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Corruption, uncertain policies remain key concerns on India: Moody

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Fiscal consolidation and moderate inflation are definite pluses for India, but graft, uncertain policies and their weak execution remain key constraints, according to Moody’s Investors Service.

In an e-mail interview with IANS, Marie Diron, senior vice president for the Sovereign Risk Group, said the agency’s assessment of India is based on its own evaluation, as also that of the World Bank on government’s effectiveness, rule of law and inflation control. This is what she said:

“India’s score are in the moderate range, reflecting checks and balances between the executive, legislature and judiciary, and increasing fiscal and monetary policy transparency,” she said.

“However, corruption, policy uncertainties and slow implementation have constrained our assessment of India’s institutional strength.”

Moody’s also expected fiscal consolidation to be gradual — as a result of specific measures on which a consensus can be reached, rather than broad-ranging fiscal strategies. So high levels of government debt, at around 65 percent of GDP, will continue to be a constraint on India’s rating.

“Besides the implications of fiscal policy for the government debt burden, the broad macroeconomic policy context has become more favourable to sustain growth. The government’s repeated commitment to fiscal consolidation contributes to maintaining inflation at moderate level.”

On the external sector, Diron said the impact on India of China’s rebalancing, the general and economic developments there will be mainly indirect. This because the share of India’s exports to China is much lower — around 3.7 percent — than for some other economies in the region.

“As a result, India would be affected by a slowdown in Chinese demand mainly to the extent that the global economy would be affected. Moreover, if such a slowdown were to lead to renewed falls in commodity prices, India as an importer of commodities would benefit,” Diron said.

“Further, China’s rebalancing may contribute to global volatility in capital flows. However, with narrower current account deficit financed by foreign direct investment, India is less vulnerable to a shift in investor sentiment and global capital flows than it would have been few years ago.”

Related article:Economic conditions of India remains weaker than peers: Moody

Diron’s assessment comes against the backdrop of the caution by Moody’s Investors Service that a prolonged worsening in asset quality of state-run banks was the main threat to India’s sovereign credit profile, while suggesting that the government must recapitalise them with more money.

Moody’s, which has given for India a credit rating at ‘Baa3’ — or just a level above the junk category — had said on Wednesday that it would consider a rating upgrade after 12-18 months, depending on improvement in macroeconomic parameters in India.

Nonetheless, its outlook on the country remained positive.

“Our positive outlook on India’s rating is based on our expectations of continued but gradual policy efforts to reduce the sovereign risks posed by high fiscal deficits, volatile inflation and weak bank balance sheets.” (IANS)

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  • Shubhi Mangla

    India has gifted the world with best mathematicians like Srinivasa and Aryabhata

  • Pritam Go Green

    Caste based reservation system is the main culprit of corruption in INDIA

    • Pashchiema Bhatia

      mainly because of the politicians who consider it as a vote bank

      • Pritam Go Green

        Mainly in North Eastern India ..where literacy rate is not up to the mark ,political leaders mislead those innocent people in the name of development promises.
        All this needs to be eradicated fast if India wants to be a developed nation.

SHARE
  • Shubhi Mangla

    India has gifted the world with best mathematicians like Srinivasa and Aryabhata

  • Pritam Go Green

    Caste based reservation system is the main culprit of corruption in INDIA

    • Pashchiema Bhatia

      mainly because of the politicians who consider it as a vote bank

      • Pritam Go Green

        Mainly in North Eastern India ..where literacy rate is not up to the mark ,political leaders mislead those innocent people in the name of development promises.
        All this needs to be eradicated fast if India wants to be a developed nation.

Next Story

WhatsApp Announces 20 Teams To Curb Fake News Globally

In India, WhatsApp has partnered with the Digital Empowerment Foundation to train community leaders in several states on how to address misinformation

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WhatsApp
WhatsApp selects 20 teams to curb fake news globally, including India. Pixabay

Facebook-owned WhatsApp on Tuesday announced that it has selected 20 research teams worldwide – including experts from India and those of Indian origin — who will work towards how misinformation spreads and what additional steps the mobile messaging platform could take to curb fake news.

Shakuntala Banaji from London School of Economics and Political Science (LSE), Anushi Agrawal and Nihal Passanha from Bengaluru-based media and arts collective “Maraa” and Ramnath Bhat from LSE have been selected for the paper titled “WhatsApp Vigilantes? WhatsApp messages and mob violence in India”.

The research examines the ways in which WhatsApp users understand and find solutions to the spate of “WhatsApp lynchings” that has killed over 30 people so far.

The Indian government has also directed WhatsApp to take necessary remedial measures to prevent proliferation of fake and, at times, motivated/sensational messages on its platform.

Among others selected were Vineet Kumar from Ranchi-headquartered Cyber Peace Foundation (principal investigator), Amrita Choudhary, President of the Delhi-based non-profit Cyber Café Association of India (CCAOI) and Anand Raje from Cyber Peace Foundation.

They will work as a team on the paper titled “Digital literacy and impact of misinformation on emerging digital societies”.

P.N. Vasanti from Centre for Media Studies in New Delhi woll work withS. Shyam Sundar, The Pennsylvania State University (Principal Investigator) to examine the role of content modality in vulnerability to misinformation, under the topic titled “Seeing is Believing: Is Video Modality More Powerful in Spreading Fake News?”

WhatsApp had issued a call for papers in July this year and received proposals from over 600 research teams around the world.

“Each of the 20 research teams will receive up to $50,000 for their project (for a total of $1 million),” WhatsApp said in a statement.

Lipika Kamra from O.P. Jindal Global University and Philippa Williams from the Queen Mary University of London (Principal Investigator) will examine the role of WhatsApp in everyday political conversations in India, in the context of India’s social media ecosystem.

According to Mrinalini Rao, lead researcher at WhatsApp, the platform cares deeply about the safety of its over 1.5 billion monthly active users globally and over 200 million users in India.

whatsapp
WhatsApp on a smartphone device. Pixabay

“We appreciate the opportunity to learn from these international experts about how we can continue to help address the impact of misinformation,” Rao said.

“These studies will help us build upon recent changes we have made within WhatsApp and support broad education campaigns to help keep people safe,” she added.

The recipients are from countries including Brazil, India, Indonesia, Israel, Mexico, Netherlands, Nigeria, Singapore, Spain, the UK and US.

WhatsApp said it is hosting them in California this week so they can hear from product leaders about how it builds its product.

“Given the nature of private messaging – where 90 per cent of the messages sent are between two people and group sizes are strictly limited – our focus remains on educating and empowering users and proactively tackling abuse,” said the company.

WhatsApp recently implemented a “forward label” to inform users when they received a message that was not originally written by their friend or loved one. To tackle abuse, WhatApp has also set a limit on how many forwards can be sent.

In India, WhatsApp has partnered with the Digital Empowerment Foundation to train community leaders in several states on how to address misinformation.

Also Read- Facebook Blocks Accounts Engaged in Malicious Activities

“We are also running ads in several languages — in print, online, and on over 100 radio stations — amounting to the largest public education campaign on misinformation anywhere in the world,” the company noted.

Sayan Banerjee from University of Essex, Srinjoy Bose from University of New South Wales and Robert A. Johns from University of Essex will study “Misinformation in Diverse Societies, Political Behaviour & Good Governance”.

Santosh Vijaykumar from Northumbria University, Arun Nair from Health Systems Research India Initiative and Venkat Chilukuri, Srishti Institute of Art, Design and Technology are part of the team that will study “Misinformation Vulnerabilities among Elderly during Disease Outbreaks”. (IANS)