Reacting to upgrade in India’s sovereign credit rating by US-based Moody’s Investors Service after a gap of 13 years, which has come as a big boost for PM Narendra Modi’s efforts to get the economy humming, Chairman of Mahindra Group Anand Mahindra pointed out that the development is significant as it took place weeks after Moody’s had downgraded China. Mahindra said that the Indian economy might finally come to the stage of the long-awaited lift-off. Mahindra took to Twitter to state that this upgrade ‘fundamentally’ applauds major reforms such as GST, Bank recapitalisation & cheers the lower risk of India’s debt burden increasing. He added that this upgrade must be seen as a signal that the groundwork has been laid for the growth in GDP.
“#MoodysUpgradesIndia The upgrade fundamentally applauds major reforms such as GST, Bank recapitalisation & cheers the lower risk of India’s debt burden increasing. But we must see it as a signal that the groundwork has been laid for robust growth in GDP (1/2),” Mahindra said in first tweet. In another tweet, he said that this pace, India will be the global centre of attraction. “#MoodysUpgradesIndia Significant that Moodys recently downgraded China. If we sustain the pace of reforms & spur consumption, the world’s attention will shift significantly to India. We can then fasten our seatbelts & prepare for the Indian economy’s long-awaited lift-off (2/2),” he added.
#MoodysUpgradesIndia The upgrade fundamentally applauds major reforms such as GST, Bank recapitalisation & cheers the lower risk of India’s debt burden increasing. But we must see it as a signal that the groundwork has been laid for robust growth in GDP (1/2)
— anand mahindra (@anandmahindra) November 17, 2017
#MoodysUpgradesIndia Significant that Moodys recently downgraded China. If we sustain the pace of reforms & spur consumption, the world’s attention will shift significantly to India. We can then fasten our seatbelts & prepare for the Indian economy’s long-awaited lift-off (2/2)
— anand mahindra (@anandmahindra) November 17, 2017
Earlier in the day, Moody’s had upgraded India’s ratings by saying, “The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term.”
Despite this upgrade, the global ratings agency made it clear that the high debt burden remains a constraint on the country’s credit profile. Moody’s upgraded the Government of India’s local and foreign currency issuer ratings to ‘Baa2’ from ‘Baa3’ and changed the outlook on the rating to stable from positive, the official statement said. The agency also stated that the new reforms will foster sustainable growth prospects.