Former Cogress president Rahul Gandhi remarks that worst condition is on the way for Indian economy. He levelled sharp criticism over the handling of the country’s economy a day after global credit rating agency Moody’s downgraded the South Asian nation’s sovereign ratings.
Moody’s Investors Services downgraded India’s sovereign ratings as it sees challenges piled up on the country’s policy making institutions to mitigate the risks of a sustained period of relatively low growth, Congress leader Rahul Gandhi says the worst is yet to come as the government has not supported the poor and the MSME sector.
“Moody’s has rated Modi’s handling of India’s economy a step above JUNK.”, Rahul Gandhi tweeted.
“Lack of support to the poor and the MSME sector means the worst is yet to come,” he added.
Moody’s also assessed that the Covid-19 pandemic amplifies vulnerabilities in India’s credit profile such as slower growth relative to the country’s potential, rising debt and further weakening of debt affordability and persistent stress in parts of the financial system.
This led to downgrading of India’s foreign-currency and local-currency long-term issuer ratings to Baa3 from Baa2.
It also downgraded India’s local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2.
Furthermore, it kept the outlook as negative. Currently, the sovereign rating assigned to India is Baa2 with a negative outlook.