Monday, January 21, 2013

Stable Outlook for India by Moody but concern remain

Global rating agency Moody’s  has retained its “stable” outlook on India but the following concern remain to resolved . These concern may lead to change in the outlook

It is now clear that S&P  & FITCH Rtaing agency are not having positive & friendly view about India but Moody is always having positive view .

Concern for India  

  • High fiscal deficit
  • Low GDP growth
  • Poor Infrastructure
  • Policy & Administrative inefficiency
  • Growing Trade & Current Account deficit
  • Low Balance of Payment
  • FX rate risk
  • Political instability till 2014 & outcome of the Election
  • Potential high Inflation rate due to Diesel price hike & upward Global commodity price
  • Rigid central Bank - Not reducing interest rate quoting high Inflation

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