newsmoments.net
newsmoments.net December 17, 2017


Moody's gives Modi a boost by raising India's sovereign bond rating

19 November 2017, 12:58 | Simon Arnold

Moody's gives Modi a boost by raising India's sovereign bond rating

Moody's rating upgrade

"The reform program will thus complement the existing shock-absorbance capacity provided by India's strong growth potential and improving global competitiveness", the rating agency said in a statement.

Commenting on Moody's upgrading India to Baa2, from Baa3, he said it is a recognition that India continues to follow the path of fiscal prudence which has brought stability to the economy.

Tyagi also said the rating upgrade to Baa2 would further boost investments including foreign inflows. The report said: "Measures (GST, DBT and Demonetisation) will increase the degree of formality in the economy, broaden the tax base, and promote expenditure efficiency through rationalisation of government schemes and better-targeted delivery will support the expected, though very gradual, improvement in India's fiscal metrics over time".


Boosting investor sentiments, USA credit rating agency Moody's on Friday upgraded India's sovereign rating to Baa2 from its lowest investment grade of Baa3 after 13 years, a development Finance Minister Arun Jaitley said was "an extremely encouraging" global recognition of the structural reforms of last three years. "In fact, government in the last three-and-a-half years has introduced so many reforms", Tyagi told reporters on the sidelines of a BSE conference on the insolvency and bankruptcy code.

The upgrade came after 13 years.

Jaitely said: "Smooth transition of GST is universally recognised as a landmark reform in Indian tax structure".


In 2015, the rating outlook was changed to "positive" from "stable". Stating that all these steps constitute major reforms and are directional, he said the rating upgrade therefore is "extremely encouraging".

Taking on opposition, Jaitley said those who had doubts about the government's reforms must introspect. The country's sovereign rating has now moved a notch above Baa3, the lowest investment grade and just a level above junk rating, to Baa2.

"We welcome this upgrade, we believe that it is a belated recognition of all the positive steps which have been taken in India in the last few years, which has contributed to the strengthening of the Indian economy", Jaitley said on Friday.




Other News

Trending Now

Donald Trump feels insulted being called 'old' by Kim Jong Un
And in a warning directed at young dictator Kim, he said: "The weapons you are acquiring are not making you safer". Trump, being the man who he is, took the bait and threw some insults back at North Korean leader Kim Jong-un.

Nintendo Announces Xenoblade Chronicles 2 Season Pass For Game
The Xenoblade Chronicles 2 Nintendo Direct presentation has just concluded, and we got way more than we were hoping for. Players who purchase the expansion pass will receive new support items in December, followed by new quests in January.

Manchester United and Celtic offer support to former player Liam Miller
Miller began his career with Celtic before Sir Alex Ferguson brought the Republic of Ireland global to Manchester United in 2004. Miller then went on to play for Leeds United, Sunderland , Q.P.R., Hibernians, Perth Glory, Brisbane Roar and Melbourne City.

Salman Khan treats fans with guns and glory
Mumbai: Superstar Salman Khan is all set to wrap the shooting for his upcoming film " Tiger Zinda Hai " today. In the picture, Salman aims a gun at the camera, with his eyes looking deadly enough to get you hooked.

United States to end protected immigration status for Nicaraguans
No matter what, I'm not leaving" said Osario, who has been in the US for 26 years, the last 19 as a TPS holder. For Martínez, the elimination of TPS would mean having to forcefully return to El Salvador.

Royals' Eric Hosmer, Alex Gordon awarded with Rawlings Gold Gloves
In addition, a sabermetric formula offered by the Society for American Baseball Research represents 25 percent of the voting. Hosmer, who will become a free agent unless he accepts the Royals' qualifying offer, won three straight during 2013-15.

Rosogolla belongs to Bengal; state defeats Odisha
The GI tag was primarily developed with the goal of recognising the unique identity connecting different products and places. The Geographical Identification authorities ruled out today that it is Bengal where the popular rosogolla originated.

Delhi smog: City's residents frustrated over auto rationing
The National Green Tribunal, India's top environment court, is still reviewing the auto rationing scheme. Adding another wave of commuters may result in collapse of public transportation system.

New 2018 iPad Pro concept imagines Face ID & bezel-less design
We could expect to see the revolutionary 3D facial recognition feature on the next iPad. Face ID on iPad models is said to bring in the same features it has in the iPhone X.

StarCraft 2 Goes Free-to-Play
Those with a desire for competition can unlock the ranked ladder for free simply by playing and winning games. F2P commanders can earn access the Ranked mode after earning 10 daily "First Win of the Day".