International rating agency Moody’s has Changed its outlook for the Indian market to’negative’ from’stable’ while reaffirming its current long-term sovereign rating at Baa2, its second-lowest investment score. Moody’s has cited the continuing deceleration on the expansion to revise its outlook for India, but we are in the midst of a worldwide economic downturn, with growth prospects weak, lacklustre and even negative in mature and emerging markets. True, India’s short-term signs have worsened of late at the face of subdued demand, but the simple fact remains that the economic fundamentals for the medium term and beyond stay solid.
Sustained budgetary rectitude and no external imbalance in the kind of an increasing current account deficit are advantages. The much-improved ease of doing business indicators, the recent lowering of corporate tax rates which are globally competitive with our peer economies, and current actions to boost exports and stepup project execution such as from the high-growth potential real estate sector would rev up the growth momentum, once some structural issues are sorted out. India must create a market for corporate bonds, reform banks, find the guts to collect realistic user fees in power and also realign the incentives in farming to make cropping patterns better fit India’s varied agroclimatic conditions.
Reviving public private Partnerships in infrastructure, particularly in constructing the new cities that Urbanising India needs, coupled with a functional debt marketplace, would push Investment back above 30% of GDP. Powerlines have attained rural India, making Possible an agro-processing revolution, if electricity were to turn a sustainable industry. With some noise reform, growth in India can come roaring back.
International rating agency Moody’s has Changed its outlook for the Indian market to’negative’ from’stable’ while reaffirming its current long-term sovereign rating at Baa2, its second-lowest investment score. Moody’s has cited the continuing deceleration on the expansion to revise its outlook for India, but we are in the midst of a worldwide economic downturn, with growth prospects weak, lacklustre and even negative in mature and emerging markets. True, India’s short-term signs have worsened of late at the face of subdued demand, but the simple fact remains that the economic fundamentals for the medium term and beyond stay solid.
Sustained budgetary rectitude and no external imbalance in the kind of an increasing current account deficit are advantages. The much-improved ease of doing business indicators, the recent lowering of corporate tax rates which are globally competitive with our peer economies, and current actions to boost exports and stepup project execution such as from the high-growth potential real estate sector would rev up the growth momentum, once some structural issues are sorted out. India must create a market for corporate bonds, reform banks, find the guts to collect realistic user fees in power and also realign the incentives in farming to make cropping patterns better fit India’s varied agroclimatic conditions.
Reviving public private Partnerships in infrastructure, particularly in constructing the new cities that Urbanising India needs, coupled with a functional debt marketplace, would push Investment back above 30% of GDP. Powerlines have attained rural India, making Possible an agro-processing revolution, if electricity were to turn a sustainable industry. With some noise reform, growth in India can come roaring back.
International rating agency Moody’s has Changed its outlook for the Indian market to’negative’ from’stable’ while reaffirming its current long-term sovereign rating at Baa2, its second-lowest investment score. Moody’s has cited the continuing deceleration on the expansion to revise its outlook for India, but we are in the midst of a worldwide economic downturn, with growth prospects weak, lacklustre and even negative in mature and emerging markets. True, India’s short-term signs have worsened of late at the face of subdued demand, but the simple fact remains that the economic fundamentals for the medium term and beyond stay solid.
Sustained budgetary rectitude and no external imbalance in the kind of an increasing current account deficit are advantages. The much-improved ease of doing business indicators, the recent lowering of corporate tax rates which are globally competitive with our peer economies, and current actions to boost exports and stepup project execution such as from the high-growth potential real estate sector would rev up the growth momentum, once some structural issues are sorted out. India must create a market for corporate bonds, reform banks, find the guts to collect realistic user fees in power and also realign the incentives in farming to make cropping patterns better fit India’s varied agroclimatic conditions.
Reviving public private Partnerships in infrastructure, particularly in constructing the new cities that Urbanising India needs, coupled with a functional debt marketplace, would push Investment back above 30% of GDP. Powerlines have attained rural India, making Possible an agro-processing revolution, if electricity were to turn a sustainable industry. With some noise reform, growth in India can come roaring back.
