Moody's downgrades India outlook, here's what the Indian government says

Last Updated: Fri, Nov 08, 2019 13:09 hrs
India Economy (Image Courtesy: Bajaj Finserv)

New Delhi [India]: India continues to be among the fastest growing major economies in the world and its relative standing remains unaffected, the government said on Friday in its first reaction after Moody's Investors Service changed its outlook on the country's rating to negative from stable.

"As India's potential growth rate remains unchanged, assessment by the International Monetary Fund (IMF) and other multilateral organisations continue to underline a positive outlook on India," said a statement issued by the Ministry of Finance.

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 the near and medium term," the statement added.

In its latest World Economic Outlook, the IMF said that Indian economy is set to grow at 6.1 per cent in 2019, picking up to 7 per cent in 2020.

The government has undertaken a series of financial sector and other reforms to strengthen the economy as a whole. India has also proactively taken policy decisions in response to the global slowdown.

"These measures will lead to a positive outlook on India and attract capital flows and stimulate investments," said the statement.

On Thursday (US eastern time), Moody's Investors Service changed the outlook on India's ratings to negative from stable and affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings.