International rating Agency Moody’s raised the sovereign ratings of India for the first time in 14 years – with the last stage of investment level Baa3 to Baa2. The Outlook is stable, reports Interfax.
Moody’s explained its decision by the reforms of the Indian government and sustained high growth of the Indian economy.
India’s economy in 2018 will grow by 7-8%, said Finance Minister Arun Jaitly. According to him, the main negative after large-scale reforms, demonetization and the introduction of a tax on goods and services has passed.
In the second quarter of this year, India’s GDP growth slowed to the lowest in 3 years – 5.7% in annual terms. Economists polled by Thomson Reuters, in the current financial year ending 31 March, the Indian economy will increase by 6.7%.
Moody’s also expects a slowdown in India’s GDP in the current fengdu to 6.7%, but in the next fingado rise will increase to 7.5% and will remain at comparatively high level in 2019 and beyond.
According to analysts Moody’s, reforms in India inspire confidence that the government will be able to cope with high levels of government debt even in the event of a shock. At the end of 2016 the public debt of India stood at 68% of GDP, whereas the average value for the state with ratings of Baa – 44%.
Earlier it was reported that Moody’s has predicted global growth for the next two years.