NEW DELHI: An American business and financial services company Moody’s downgraded its outlook on India’s ratings on Thursday from “stable” to “negative”.
Moody’s said the change partly reflected lower government and policy effectiveness in addressing “economic and institutional weaknesses” that led to a rise in the already high levels of the debt burden.
India is undergoing a significant slowdown. Its economic growth hit a six-year low in the April-to-June quarter, during which the economy grew 5% from a year ago. An ongoing crisis in the finance sector has hamstrung lending, impacting investments, while recent policy reforms have left small-and-medium businesses reeling. Moreover, the Indian economy is also struggling to create enough jobs for its workforce.
Moody’s indicated that there are very less chances of India’s economy to get stable as conditions are getting more worse.