Moody’s Has Praised GST, He Said – The GDP Will Grow.
Moody’s international position agency has said that GST will increase India’s GDP and tax revenues. The Investor Services of the position agency have said that GST will make the business easier in the country and will link the market of the whole country. This will emerge as an attractive market for foreign investors.
The Vice President of Moody (Sovreen Risk Group) Guillermo Foster said that GST is expected to grow in GST and GDP growth during the medium term. This will also prove to be a major source of revenue for the government when the number of taxpayers will increase.
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Moody’s Negative Perspective for the Banking Sector.
The global positioning agency Moody has retained its negative outlook for the country’s banking sector. Moody says that by taking advantage of the slowdown in banking processes by the corporate sector, it is difficult to improve asset quality (asset quality) of banks.
In a statement issued by Moody’s in Singapore on this, it has been said that our view on the scenario of the country’s banking system (Outlook) is still negative, as it was in November 2011. Our idea behind negative outlook is that there is less chance of improvement in the quality of the assets of the banking sector due to profit from the corporate sector. It also hinders the economy’s strong recovery.
Rating is hindered due to losses and inflation.
Despite the best growth figures in the first quarter of the current fiscal year, the agency Malhumorada has said on Wednesday that the high level of fiscal deficit and inflation limits prospects for improving the country’s sovereign position.
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The Moody Investors Service says strong growth in large economies and divers economies will help in relation to credit-related challenges, but the fiscal deficit and inflation limit the improvement in the sovereign position. Moody has made this comment after the data released in the first quarter was 5.7 percent of GDP and current account deficit of 1.7 percent of GDP.
Inflation is stopping the economy Moody’s
The high inflation rate in India is increasingly on the recovery of the economy. Ratings agency Moody’s says food inflation is much higher than the global average and it has an important role in India’s inflation.
Moody’s Investors Service has said in a report that keeping the rate of inflation consistently high, India’s sovereign rating is also adversely affected. Increasing the cost of domestic capital increases the domestic purchasing capacity due to rising inflation. The result also comes in the form of reduced savings and the ability to compete at the international level.
In July, wholesale inflation was 5.19 percent, while food inflation has increased to 8.43 percent. Food inflation in wholesale inflation is more than 14 percent.
Food inflation may decline: Moody’s
Moody’s global position agency has warned that a high level of food inflation can have a negative impact on the country’s credit rating.
According to the agency, this can increase financial pressure on the government and its impact on the monetary policy of the Reserve Bank of India (RBI) can also be seen. The credit outlook report published by Moody’s Investor Service said that the continuation of food inflation is a negative negative sign for India’s economic scenario.
Moody’s warns of lowering rating.
Moody’s global position agency has warned the government that increasing the trade deficit can lower the country’s credit rating. With this, increasing losses can also increase the impact of global instability on the country’s economy. Along with this, Moody has warned of rising inflation and rising inflation.
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At present, Moody’s has given India the lowest rating of BAA-3 investment rating and has kept Outlook as a stable (category) category. Thus, any fall in the rating can lead to the credit rating of the country in the junk category.
Moody’s expressed hope to return to strength in GDP.
International rating agency Moody’s has presented a good picture of India’s economy for the coming days. In the last quarter of the financial year, he said the country’s economic growth rate is expected to be slightly above 5.5.
The agency has said that the steps taken by the government towards the economic reforms in the past have largely ended the fears of investors’ minds and the fundamental problems of the infrastructure sector are also increasing towards resolving. This shows a clear picture of the return to the GDP growth rate.