New Delhi, Sep 29 (IANS) Moody’s Ratings on Monday affirmed India’s long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating at Baa3. The global ratings agency has also maintained its outlook for India as stable.
“The rating affirmation and stable outlook reflect our view that India’s prevailing credit strengths, including its large, fast-growing economy, sound external position and stable domestic financing base for ongoing fiscal deficits, will be sustained,” Moody’s said in its note.
The rating agency has said that the US’ imposition of high tariffs on India will have limited negative effects on India’s economic growth in the near term.
“However, it may constrain potential growth over the medium to long term by hindering India’s ambitions to develop a higher value-added export manufacturing sector,” said the rating agency.
Additionally, the agency also doesn’t expect other US policy shifts, including those related to new applications for skilled worker visas and potential levies on US businesses that outsource operations offshore, to significantly weigh on workers’ remittances or India’s services exports.
These strengths lend resilience to adverse external trends in particular as high US (Aa1 stable) tariffs and other international policy measures hinder India’s capacity to attract manufacturing investment.
India’s credit strength are balanced by long-standing weaknesses on the fiscal side which will remain. Strong GDP growth and gradual fiscal consolidation will lead to an only very gradual decline in the government’s high debt burden, and will not be sufficient to materially improve weak debt affordability, especially as recent fiscal measures to reinforce private consumption erode the government’s revenue base.
Earlier, the rating agency had said that the 50 per cent tariffs levied by the Donald Trump administration on Indian goods announced could reduce India’s economic growth by about 0.3 percentage points. However, it acknowledged that strong domestic demand and a resilient services sector would help cushion the impact.
–IANS
sps/na
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
