New Delhi: India's deteriorating economy had hit the Modi government with opposition after the corona epidemic. However, the situation is now gradually improving. On Tuesday (October 5, 2021), Moody's Investors Service confirmed India's sovereign rating and changed it from negative to stable. This is good news for the economy of the country.
Moody's Investors Service today stabilized the outlook from negative to negative over the Government of India's rating, Moody's said in a statement. With this, the country's foreign exchange and local currency have been maintained at long-term issuer rating and local currency rating (Senior Unsecured) BAA3. Moody's cited a reduction in the risk of decline in the economy and the financial system over-improving conditions. The rating agency said, "Better capital and good cash conditions have reduced risks at the level of banks and non-banking financial institutions as compared to pre-estimates.''
Moody's said, "There is a threat due to high debt burden and weak debt affirmation. But Moody's hopes that the economic environment will help in gradually reducing the fiscal deficit of the Central and State Governments in the next few years. This will prevent further decline in government credibility.''