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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)

  • 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

Indian Education Institutions Face Cyber Security Challenge

Indian Education Institutions receive cyber threats from hackers

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Cyber crimes
Indian education institutions are hit hard by cyber crimes. Pixabay

Education domain is one of the most “at-risk” industries in India, with the sector accounting for more than 30 per cent of cyber threats targeting enterprises in the country between July and September 2019, a new report from Seqrite, the enterprise arm of IT security firm Quick Heal Technologies, said on Wednesday.

Other industries that remained at high risk included manufacturing, BFSI (banking, financial services and insurance), media and entertainment and professional services — underlining that no sector remained immune from the growing cybersecurity challenge in the country.

Between July and September 2019, Seqrite detected and stopped more than 38 million cyber threats, including ransomware, malware, virus/worm infectors, cryptojacking and exploit-based attacks.

This marks an increase of four million and 10 million over the number of threats detected in Q2 2019 and Q1 2019, respectively.

It also marked a massive year-on-year increase of 12 million over the corresponding numbers in Q2 2018, which saw 26 million threats stopped by Seqrite.

“In the face of the growing cybersecurity challenge highlighted in the report, it is important that Indian organisations across industries understand and acknowledge the heightened severity and sophistication of the threat landscape,” said Sanjay Katkar, Joint Managing Director and Chief Technology Officer, Quick Heal Technologies.

cyber security
No sector remains immune from the growing cyber security challenge in the country. Pixabay

“Deploying robust, multi-layered, and tech-backed security solutions is no longer a luxury, but a critical necessity for enterprises across the country,” Katkar added.

The emergence of sophisticated ransomware such as “LockerGoga” marked a shift from a single-screen approach to leveraging ransomware as a sophisticated payload distribution platform.

Unsecured Remote Desktop Protocol (RDP) was also targeted by ransomware such as “TFlower” to compromise the security of corporate enterprises and government agencies at scale.

Constantly evolving malware continued to use complex obfuscation techniques and attack methodologies to escape detection by conventional, signature-based cybersecurity approach.

Also Read- Amazon Introduces ‘Project Zero’ in India to Block Counterfeits

During the latest monitoring period, Trojans saw a huge surge in their adoption and were the preferred attack method deployed against Indian enterprises, with such intrusions accounting for 27 per cent of the total threats.

Other threats such as infectors (24 per cent), worms (17 per cent), PUAs (13 per cent), and cryptojacking (11 per cent) also remained popular amongst cybercriminals. (IANS)