Finance Minister Arun Jaitley today welcomed the first update of Moody’s Investors in nearly 14 years of his ratings on the Indian government, and called for “late recognition of the positive steps taken by the Indian government”. Years to strengthen the economy “Mr. Jaitley also criticized the government’s economic policy and said,” Many who have doubts about the reform process in India can now seriously ponder their position. ”
The finance minister said that the upgrade to the recognition and approval was that “have placed a number of structural reforms over the past three years, India on the path of growth path,” and that “India continues to follow the path of fiscal prudence this stability.”
Moody said Friday that he raises India’s rating to Baa2 Baa3 and the rating outlook has changed positively, saying that continued progress in economic and institutional reforms will boost the country’s growth potential.
The upgrade, Moody’s since January 2004, puts India’s rating at the second lowest level of investment.
It is a boost for the big government of Prime Minister Narendra Modi and the reforms he has implemented and comes a few weeks after the World Bank India with 30 seats brought to a higher level.
All markets, including equities, bonds, and rupees, have made good progress in valuing ratings.
The upgrade is also right before the crucial Assembly elections in the state of origin of Gujarat PM Modi, where Rahul Gandhi, vice president of the Congress, based on his party’s election campaign attacked the government on an economic slowdown, with a June fell growth under 6% Quarter. Last year’s Congress blamed the demonetization and implementation of the new national GST tax in July of this year.
Mr. Jaitley said: “The measures, including demonetization, among others, bring India to a digitized economy.” The implementation of Aadhaar was also a very important step, as was the GST, which recognized the world as one of the most important reform measures that have been taken. In the history of India Independent. ”
He refused to develop the link today for the upcoming elections and said: “In India, perform three or four times by-elections of the year when everything is tied to elections, there would be no development sustainable economic and growth, we go. All are busy with elections and speeches. ”
Sitting next to Mr. Jaitley, Government Economic Advisor Arvind Subramanian said, “I think we should all keep in mind that ratings are not causes or motivators for government actions, but they have benevolent effects of government action”.
Moody noted that while some reforms remain important in the design, she believes that the measures already implemented the government’s goal of improving the business environment, increase productivity and boost investment, will promote.
“In the long-term growth potential of India is much higher than that of most other Baa-rated countries,” the agency said.
It is said that the productivity of the GST will increase by trade barriers between the states Dissipation, which also highlights the challenges posed by the introduction of the new tax, the continued weakness of private investment, the slow progress in the resolution quality problems in the banking sector and the lack of progress in land and labor reform remains a significant problem.