Why did moody's downgrade India's rating?
A report by global rating agency moody's downgrading India's outlook to negative from stable has sent a shockwave through business and economic circles.
Our Automated excel sheet for nifty options
Advance nifty option trading automated excel sheet with back Testing
Key Reasons for the moody's downgrades
- Moodys downgraded India rating because of Slowdown in growth
- GDP of India has fallen from 8% to 5 percent in just 5 quarters
- India tax collection ability is going down after GST implementation
- The government will not meet its fiscal deficits target due to lower tax collection
- Due to lower tax collection government spending will decrease and it is much more difficult to create new jobs and bring the economy in the growth path
- The government has done various reforms like GST- bankruptcy and insolvency act - implementation of fiscal responsibility and budget management act but the government is not able to implement these reforms successfully.
- Moodys says apart from these reforms the government needs to implement labor and land reforms to bring back the growth in-country. These reforms will allow to set up new industries and it will help to created jobs and increase the spendings in the economy.
- The government is facing challenges in implementing the reforms. There is a gap between government intention and the outcomes
- Moodys says Government recent reforms like corporate tax reduction - special fundings to housing sectors - will not bring India growth back in track
- The Indian government needs to implement reforms like flexible labor law - the easy availability of land to sep up factories - improve the infrastructure will bring back India's growth to a sustainable rate.
- The climate risk and the environmental risk in India is very high cities like Delhi there are issues like air pollution- water scarcity and overtime if these issues are not addressed it will impact the Indian economy - social welfare - peoples ability to contribute in full to the workforce as healthy workers will lead in a decrease in productivity and also in consumption which will lead to less foreign investment and domestic investments .
- Lower food price increases the stress among the farmers. Framers Income in the ruler area is not increasing which leads to lower consumption of industrial items.
- The debt of companies is very high which is increasing the credit crunch situation and can lead to high defaults in banking and NBFC sectors.
- The truth of the brokerage industry, Trading expert & retail traders
- Stock market educators or institute vs retail traders
- How professional traders trade?
- Working principle of stock market
- What causes bull and bear market
1 Comments
World stocks nudged downward as Chinese financial data slowed in this October and Germany merely narrowly avoided a depression in the 3rd quarter. The STOXX 600 index was downward 0.2%.? Free Stock Tips
ReplyDeleteThank you for your valuable comment