The government of India today clarified after Moody's Investors Service changed India's rating outlook to negative from stable.
"Government of India has noted that the Moody's Investors Service has today changed the outlook on the Government of India's ratings to negative from stable while keeping the foreign-currency and local-currency long-term issuer ratings unchanged at Baa2.
However, India continues to be among the fastest growing major economies in the world, India's relative standing remains unaffected.IMF in their latest World Economic Outlook has stated that Indian Economy is set to grow at 6.1% in 2019, picking up to 7 % in 2020. As India's potential growth rate remains unchanged, assessment by IMF and other multilateral organizations continue to underline a positive outlook on India," the release stated.
The release noted that the government has undertaken series of financial sector and other reforms to strengthen the economy as a whole.
"Government of India has also proactively taken policy decisions in response to the global slowdown. These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments.
The fundamentals of the economy remain quite robust with inflation under check and bond yields low. India continues to offer strong prospects of growth in near and medium term," the clarification highlighted.