look news india
Mumbai: Moody's India has maintained a stable outlook for India. Moody's has maintained the long-term and short-term ratings for the Government of India at BAA3 and P-3 levels. However, the agency also warned that political tensions in India could harm the country's long-term growth prospects.
The stable outlook means India's fiscal position will continue to gradually improve amid a strong growth outlook relative to its rivals.
Maintaining a stable outlook, Moody's said India is maintaining its large and diversified economy. India's economy has emerged strongly from the Corona epidemic. However, the rating agency's report also claims that there will be no significant reduction in India's debt next year amid fiscal discipline. India is vulnerable to threats posed by rising political tensions. The rising debt burden could weaken India's fiscal sustainability and put pressure on the ratings.
India is benefiting from infrastructure development, digitalization and restructuring of the financial system. Moody's has revised its economic growth forecast for the ending financial year to eight percent in view of strong growth data in the first three quarters of fiscal year 2023-24.
Moody's has maintained India's economic growth forecast at more than 6 percent over the next two financial years.
In a report released in March, the agency had projected that India's economic growth rate in 2024-25 would be higher than that of rival emerging markets among the G20 countries.
India's economic growth rate was strong at 8.40 percent in the December quarter of the last financial year.