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Moody’s Rating Agency: Due to the rapid development of the Indian economy, its debt burden is expected to decrease. Rating agency Moody’s Investors Service has expressed this estimate. Moody’s says that India needs to strengthen its fiscal position and improve its credit profile to reduce its outstanding debt. Moody’s has predicted that the debt burden on India will come down.
Moody’s said in its report that India is the fastest growing economy. He said that on an average India’s GDP will see a growth of 11 percent in nominal terms. According to the report, due to the rapid growth of India’s Gross Domestic Product (GDP), the country’s debt burden is expected to decline.
Moody’s said that the government debt in general is very high in India. It has been about 81.8 percent of GDP during the financial year 2022-23. While for BAA-rating, the debt burden should be 56 per cent on an average against GDP. Moody’s said that compared to the revenue, the affordability of the government’s interest payment is very low. It is estimated to be 26 percent in 2022-23, which should be 8.4 percent. It was said in the report that if the government does not increase the renewal, then the government may have to face difficulties in meeting the needs related to development along with speeding up the development.
Moody’s has given India a Baa3 sovereign rating with a stable outlook. The Finance Ministry is scheduled to hold a meeting with Moody’s officials on Friday, June 16, 2023, to increase the rating. Chief Economic Advisor This meeting will be held with the officials of Moody’s Investors Service under the leadership of (Chief Economic Advisor) V Anantha Nageswaran. In this meeting, an example of better growth outlook will be presented by the Indian officials with excellent GDP data for 2022-23. Along with reduction in inflation, emphasis will be given to upgrade the rating by citing other better macro-economic factors.
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