With its strong fundamentals, India is managing the effects of global slowdown with resolute measures in a host of sectors, besides taking up structural reforms in taxation, banking, finance, and thus change in India’s ratings by Moody’s Investor Service to ‘negative’ from ‘stable’ is incomplete in its assessment, said ASSOCHAM President B K Goenka.

”We in India, fully stare Hon’ble Finance Minister Nirmala Sitharaman’s optimistic outlook about the Indian economy, with inflation staying low and the current account situation remaining quite strong. The government has lined up an ambitious and bold disinvestment programme to shore up its resouces. Moreover, a series of measures have been taken, which include a Rs 25,000 crore Special Window for the housing sector, coupled with reduction in corporate tax to boost investment and simplification of taxation. The festive season has begun well, with corporates steadily improving their bottom line, “said Mr Goenka.

The ASSOCHAM President added that with effective support from the RBI and the Finance Ministry, the Non-Banking Finance Companies (NBFCs) too are getting credit from banks. Some of the well-run NBFCs are continuing their businesses with the same confidence.
With rural demand expected to pick up after a good monsoon, the Indian economy would continue to be among the fastest growing in the world, he said, adding that the rating downgrade by Moody’s needs to factor in other reform measures.” It would be incomplete to view the Indian economy solely on the basis of this rating, particularly, as it is among the best performing in an otherwise subdued global environment”, Goenka said.