Finance Ministry Responds To Moody’s Negative Outlook On India

On Friday, international rating agency Moody's Investors Service, downgraded India's credit rating to "negative" from "stable" on concerns over the country's economic growth to remain lower than the past.

The foreign-currency and local-currency long-term issuer ratings were unchanged at Baa2.

In response to the change in outlook, the Finance Ministry issued a statement that said that India "continues to be among the fastest growing major economies in the world" and that the country's "relative standing remains unaffected."

"IMF in their latest World Economic Outlook has stated that Indian Economy is set to grow at 6.1% in 2019, picking up to 7 % in 2020. As India's potential growth rate remains unchanged, assessment by IMF and other multilateral organizations continue to underline a positive outlook on India," it added.

"The Government has undertaken series of financial sector and other reforms to strengthen the economy as a whole. Government of India has also proactively taken policy decisions in response to the global slowdown. These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments," the Ministry's statement further said.

It also said that the fundamentals of the Indian economy remain quite robust with inflation under check and bond yields low.

"India continues to offer strong prospects of growth in near and medium term."