Moody's assumes that the RBI will continue to pursue price and financial stability and implement policies towards these goals.
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.
Moody's expects growth in G-20 advanced countries to be stable at 1.8 per cent for 2016.
Moody's Investors Service on Tuesday lowered India's GDP growth forecast for the 2020 calendar year to 5.3 per cent, on coronavirus implications on the economy. Moody's had in February projected a 5.4 per cent real GDP growth for India in 2020. This too was a downgrade from 6.6 per cent earlier forecast.
Moody's Investors Service on Friday slashed its estimate of India's GDP growth during the 2020 calendar year to 2.5 per cent from an earlier estimate of 5.3 per cent, on account of the rising economic cost of the coronavirus pandemic.
Fitch Ratings on Tuesday raised India's growth forecast for the current fiscal to 7.2 per cent, from 7 per cent projected in March, saying elevated consumer confidence will drive spending, besides increased investments. In June update to its global economic outlook report, Fitch said it expects inflation to decline to 4.5 per cent by end of this year and RBI to cut policy interest rates by 25 basis points to 6.25 per cent.
Bharti recorded $5 billion liability for past-due AGR fees, but is still completing its self-assessment to determine the final amount.
The moves on basic income for farmers - Rs 6,000 per person in three installments per annum - and subsidised agricultural loans are likely to boost the rural economy through consumption in the near-term, but will have a fiscal cost, it noted.
Moody's in its report said power generators were unlikely to benefit meaningfully.
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.
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.
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.
Some banks called the Moody's move backward looking, arbitrary and unwarranted.
For 2020 calendar year, it reduced the estimate by a similar measure to 6.7 per cent.
Moody's Investors Service, while silent on the sovereign rating on the higher-than-expected fiscal deficit numbers, expressed doubts over attaining the higher revenue targets and divestment realisation as assumed in the Budget. The Union Budget 2021-22 has pegged a fiscal deficit of 9.5 per cent for the current financial year as against the consensus 7 per cent, and 6.8 per cent for 2021-22 with a market borrowing of around Rs 12 lakh crore. It also assumes Rs 1.75 lakh crore to be scooped up from divestment.
Moody's said together, proceeds from these transactions will result in a $ 16 billion reduction in RIL's net debt.
'But their bowling is poor. Beyond Jasprit Bumrah, there is no one to actually support them in that bowling attack, and the CSK batters took them apart.'
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Moody's has a 'Baa3' rating for India, with a positive outlook.
The senior Congress leader also said over 90 per cent of jobs are in the SME sector which requires an urgent push to boost the economy.
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.
Moody's expected economic activity to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent, respectively.
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.
Finance Minister Nirmala Sitharaman on Tuesday announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and a spending splurge for states run by her party's new coalition partners as she unveiled the Modi 3.0 government's first budget after the general elections.
The global ratings agency, however, cautioned that high debt burden remains a constraint on the country's credit profile.
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It expects Indian economy to grow by 6 per cent in 2013-14.
There are plenty of summer fashion goals for you.
Moody's expects that India will record the GDP growth of around 7.5 per cent in 2015 and 2016.
Global rating agency Moody's on Friday said that India's ratings may be downgraded if the government debt rises substantially, due to a lack of medium-term reforms and delay in privatization among others.
"The fundamental credit outlook for the Indian banking system remains negative, reflecting the currently challenging economic conditions and the rising level of problem loans," Moody's said in a report.
The note was authored by Faraz Syed, an associate economist with Moody's Analytics.
India's fiscal deficit and inflation outlook could prevent any upgrades in the country's sovereign rating, even as the economy is headed for recovery
Through Manorathangal, M T Vasudevan Nair makes himself available to a whole new generation of uninitiated viewers, who can familiarise themselves with his rich body of work and hope to learn a thing or two about life in all its messy grandeur and flawed imperfections, notes Arjun Menon.
Some banks called the Moody's move backward looking, arbitrary and unwarranted.
Although, Moody's expects that global and domestic factors, including potential shocks in agriculture, could keep India's growth below trend for the next few quarters.
Vikrant Massey is a man of undeniable talent. But he too can't rise above Blackout's derailed script that reduces the likes of Jisshu Sengupta, Chhaya Kadam and Mouni Roy to chumps, observes Sukanya Verma.
The revision was announced before Indian markets opened on Thursday.
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