Government of India has noted that the Moody’s Investors Service has today changed the outlook on the Government of India’s ratings to negative from stable while keeping the foreign-currency and local-currency long-term issuer ratings unchanged at Baa2.

However, India continues to be among the fastest growing major economies in the world, India’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.

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 fundamentals of the 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.

Credit outlook change: negative outlook noted while government stresses unchanged ratings, robust reforms, and continued growth prospects. Moody's change of outlook to negative is noted while long-term foreign- and local-currency issuer ratings remain unchanged; the Government stresses robust macroeconomic fundamentals, controlled inflation, low bond yields, growth prospects supported by multilateral forecasts, and recent reforms and policy measures to attract investment and stabilise the economy.