‘Worst yet to come’, says Rahul Gandhi as Moody’s downgraded India’s rating first time in two decades

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Updated: Jun 02, 2020 1:15 PM

Congress leader Rahul Gandhi said that lack of support by the Modi government for poor and small and medium industry indicates that the worst is yet to come.

Rahul Gandhi slams Modi government after Moody’s downgrades India’s rating first time in two decades. (File pic)

Congress leader Rahul Gandhi on Tuesday voiced concern over the state of India’s economy, saying global rating agency Moody’s has termed its handling by Prime Minister Narendra Modi “a step above junk”. He said lack of support to the poor and small and medium industry indicates that the worst is yet to come.

“Moody’s has rated Modi’s handling of India’s economy a step above JUNK. Lack of support to the poor and the MSME sector means the worst is yet to come,” he said on Twitter.

Moody’s Investors Service has downgraded India’s sovereign credit rating for the first time in more than two decades, saying policymakers will be challenged to mitigate risks of low growth, deteriorating fiscal position and financial sector stress.

Downgrading India’s rating by a notch to ‘Baa3’ from ‘Baa2’ assigned in November 2018, Moody’s on Monday estimated India GDP shrinking by 4 per cent — first full fiscal contraction in more than four decades, as the country faces a prolonged period of slower growth.

‘Baa3’ rating is the lowest investment grade — just a notch above ‘junk’ status. Moody’s had last downgraded India’s rating in 1998.

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