The government's second round of stimulus will spur consumer spending in the near term but support to economic growth will be minimal, Moody's Investors Service said.
India's exports, which is on a declining spree since October last year, is likely to stabilise in the next few months, but the real recovery will happen only by 2010, Moody's said.
The government had on Wednesday issued a statement dismissing report of Moody's Analytics.
The sovereign ratings outlook for India may turn negative, from stable currently, if the country's fiscal policy fails to check external shocks like crude prices or aggravates the inflation concerns, global rating agency Moody's warned on Monday.
"The stronger-than-expected start of the fiscal year has prompted . . . to revise India's annual growth forecast from 6.2 per cent to 6.4 per cent," Moody's economy.com, a research arm of Moody's, said in a release.
International rating agency Moody's has indicated that it is unlikely to revise India's rating, but prescribed strong measures to curb fiscal deficit for spurring growth during the Congress-led coalition government's regime.
Moody's on Monday upgraded India's local currency sovereign rating by a notch on the country's efforts toward fiscal reforms and the economy's capacity to face a crisis, a move that that will result in greater capital inflows and appreciation of rupee value.
India's top fuel retailers IOC, BPCL and HPCL together lost around $2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during elections in five states, including Uttar Pradesh, Moody's Investors Services said on Thursday. State fuel retailers did not revise petrol and diesel rates for a record 137 days despite prices of crude oil (raw material for producing fuel) rising to $120 per barrel compared to around $82 in early November when the hiatus began. "Based on current market prices, the oil marketing companies are currently incurring a revenue loss of around $25 (over Rs 1,900) per barrel and $24 per barrel on sale of petrol and diesel, respectively," Moody's said in a report.
Government has been able to push through economic reforms, especially allowing foreign investment in multi-brand retail.
A player-of-the-match award in only his second Test, plaudits from the pundits and even a "man crush" from his England counterpart -- India wicketkeeper Dhruv Jurel could not have dreamt of a better start to his international career.
India plans to keep its fiscal deficit within 3.9% of GDP.
It had upped India's rating to Baa2 from Baa3 and changed its rating outlook to 'stable' from 'positive', saying the reforms would help stabilise rising levels of debt.
Moody's cited a likely rise in the bank's non-performing assets in the near future as one of the reasons for the downgrade.
Indian economy is likely to expand in the range of 5.4 to 5.9 per cent this fiscal, as per government estimates.
The report further pointed out that the current rupee volatility will be 'less damaging than in 1991, when low reserves and a widening current account deficit prompted India's last balance of payment crisis'.
Moody's said the negative outlook reflected uncertainty over the refinancing of Macrotech's (formerly Lodha Developers) upcoming debt maturities.
Moody's listed six agenda on the list of pending reforms -- land acquisition Bill, labour law reforms, significant infrastructure investment, tangible benefit from Make in India initiative, tax administration and PSU bank reforms
Three years after India declared its goal to become a net-zero economy by 2070, the policy design for achieving the target has begun, with the NITI Aayog forming dedicated multi-sectoral committees to prepare a transition plan. In 2021, India joined a select group of nations that set a target year for becoming net-zero carbon economy. At COP26 in Glasgow, Prime Minister Narendra Modi outlined a five-pronged 'Panchamitra' climate action target for India and committed to a net-zero target by 2070, joining nations like the US, the UK, and China.
Sukanya Verma raises a toast to the top female performers of 2024.
"India's gross domestic product growth to remain weak at 5.5 per cent in the fiscal year ending March 2015, as elections in mid-2014 will delay reforms needed to revive the economy," Moody's Investors Service said in a report.
Bharti recorded $5 billion liability for past-due AGR fees, but is still completing its self-assessment to determine the final amount.
Global rating agency Moody's on Thursday placed India on a possible upgrade on foreign currency debt and painted a rosy picture for the economy, projecting a seven per cent growth.
Former Team Director Ravi Shastri will be the front-runner for the Head Coach's job of the Indian men's cricket team when the three-member Cricket Advisory Committee (CAC) meets in Mumbai on Monday to scrutinize candidates for the high-profile vacancy.
The growth had slumped to sub-5 per cent in the earlier two consecutive fiscals.
Although fundamentals remain strong and its prospects upbeat after an impressive pace in 2007, the growth in India's domestically-driven economy would moderate in 2008 as domestic demand eases and exports cool, according to Moody's Economy.com, a subsidiary of the global credit rating agency.
India's economy contracted by 7.3 per cent in fiscal 2020-21. The pandemic, it said, will leave new economic scars and deepen pre-pandemic constraints.
The US Federal Reserve on Wednesday night hiked interest rates by 0.25%.
PSBs dominate India's banking system, meaning any failure could jeopardise financial stability, as such, we expect government support will remain forthcoming, said Moody's.
Moody's assigns 'Baa3' rating on India, with a stable outlook.
Doubles specialist Wesley Moodie was named in South Africa's five-member squad for the Davis Cup World Group play-off tie against India, from September 18 to 20, in Johannesburg.
The global ratings agency keeps India's sovereign rating unchanged at 'BBB-' with stable outlook
'Probability has increased for India to have improved fundamentals'.
Global rating agency Moody's on Monday said HDFC Bank's multiple digital outages are credit negative as such recurring incidents could lead to moderation in revenue and flight of customers to other banks. The recurring outages also risk hurting the bank's brand perception among a growing and increasingly digitally savvy customer base, and increases the potential that clients switch to other banks, which would lead to a reduction in revenue and low-cost retail funding, Moody's said in a statement.
Moody's Investors Service has changed the outlook for the long-term foreign currency deposit ratings of a number of Indian banks -- currently rated Ba2 -- from 'negative' to 'stable' for India.
Moody's said fiscal measures undertaken by the government -- such as corporate tax rate cuts, bank recapitalisation, infrastructure spending plans, support for the auto sector and others -- do not directly address widespread weakness in consumption demand, which has been the chief driver of the economy. In addition, interest rate cuts by the Reserve Bank of India are not being adequately transmitted to lending rates because of the credit squeeze caused by disruption in the non-bank financial sector, it said.
Budget clearly prioritised growth over fiscal consolidation, said Atsi Sheth, Senior VP, Moody's Investors Service.
Prime Minister Narendra Modi led-NDA government in its third term must tackle the problem of unemployment in the country, especially in the unorganised sector and in small and medium enterprises, former NITI Aayog Vice Chairman Rajiv Kumar said on Monday. Kumar also emphasised that the government now must finalise the four labour codes as it has been delayed beyond expectations. "We must recognise that post-COVID economic recovery has been a K-shaped recovery.
Pathan conceded that Jasprit Bumrah is the only automatic selection among the bowlers.
Former South African quick Dale Steyn opined that MI's frontline pacers Bumrah and Coetzee need support from other bowlers, given the rigours of the IPL. He hinted that an off-colour Pandya was not helping MI's bowling department.
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