Change In Mood
The Times of India Delhi|October 07, 2021
Ratings upgrade is good news. But India’s trend growth rate has to exceed 6%

Credit rating agency Moody’s Investors Service this week enhanced GoI’s rating outlook from negative to stable. It also affirmed Baa3 ratings for long-term loans in both domestic and foreign currency, indicative of moderate credit risk. It’s welcome and signals the worst of the pandemic induced economic shock is behind us. Two of the underlying reasons for the change in outlook are of particular importance. Moody’s forecast that the real GDP in 2021-22 will surpass the pre-pandemic level. Effectively, it means that it will take two years to get back on track, a period lower than what was widely estimated early on.

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