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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.

  • 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

Most Famous Railway Stations Of India

Indian railways stations are not only railways stations but are also one of the apexes of India pre and post-colonial history

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India has many railways stations famous for various reasons. Wikimedia Commons
India has many railways stations famous for various reasons. Wikimedia Commons

By Ruchika Verma 

  • Indian Railways is one of the biggest railways networks in the world
  • India has railways stations which are famous for various reasons
  • Indian railways stations are famous for various reasons from being beautiful to being a haunting place

India has one of the biggest railways departments in the world. And also, one of the largest numbers of railway stations as well. Indian railways stations are not only railways stations but are also one of the apexes of India pre and post-colonial history.

Railways is of great importance for India because of its economic as well as historic significance. Wikimedia Commons
Railways is of great importance for India because of its economic as well as historic significance. Wikimedia Commons

Railways have a huge behind the increasing Indian economy, the revenue generated is huge. Railways were introduced by Britishers in India and since then it has become of the biggest assets of India. They are not only a mode of transportation but also have a huge historical background.

Here is the list of some of the most famous Indian Railway Station.

Chhatrapati Shivaji Terminus

Chhatrapati Shivaji Terminus (CST) or the Victoria Terminus (VT) as it popularly known is in Mumbai. It is one of the largest railways stations in India. It is also one of the most famous and has found a place in the list of UNESCO World Heritage Sites because of its magnificent gothic architecture. The station was built in 1887 to celebrate the golden jubilee of Queen Victoria.

Chhatrapati Shivaji Terminus is one of the oldest and largest railways stations in India. Wikimedia Commons
Chhatrapati Shivaji Terminus is one of the oldest and largest railway’s stations in India. Wikimedia Commons

Lucknow Charbagh Railway Station

It is one of the most beautiful railway stations in India. It has 9 platforms and other 4 which are under construction. The Lucknow Charbagh Railway Station has a magnificent architectural masterpiece. It was built in 20th century by the British and looks more like a monument than a railway station. It is one of the two major railways stations in Lucknow and is well-connected to the whole country.

Also Read: Indian Railways to use artificial intelligence

Howrah Junction 

Howrah Junction in Kolkata is the oldest railway station in India. It is also one of the largest railway stations in India with 23 platforms. Howrah Junction can handle more trains than any other Indian railway station. Despite being renovated several times, it still holds the magnificence of the British and Bengali architecture.

Howrah Junction is the oldest railway station in India. Wikimedia Commons
Howrah Junction is the oldest railway station in India. Wikimedia Commons

Cuttack Railway Station
Cuttack is a city in Odisha. The Cuttack Railway Station in Odisha is one of the most beautiful and cleanest Indian railway stations. This railway station is famous for its architecture which is said to be inspired by the Barabati Fort, which is located in the Kalinga region of Odisha.

Vijayawada Junction Railway Station

Vijayawada Junction is one of the largest railway stations in India and is situated in Andhra Pradesh. It was constructed in 1888 and is famous for its architecture. It is also one of the busiest railway stations in India. It is also famous for its white structure.

Vijayawada Railway Station was constructed in 1888. Wikimedia Commons
Vijayawada Railway Station was constructed in 1888. Wikimedia Commons

Begunkodor Railway Station

Begunkodor Railway Station is in West Bengal. This station us famous because it is said to be haunted. Due to this, the station has been abandoned for 42 years. The station is said to be haunted by the ghost of a woman draped in a white sarees.

Also Read: Facts about Indian Railways you can’t miss

New Delhi Railway Station

New Delhi Railway Station is one of the largest railway stations in New Delhi and India. It is also the main railway station of Delhi. The railway station situated between the areas of Ajmeri Gate and Paharganj and sees the one of the largest crowd of commuters.

New Delhi Railway Station is famous for being the largest metro station in the capital, New Delhi. Wikimedia Commons
New Delhi Railway Station is famous for being the largest metro station in the capital, New Delhi. Wikimedia Commons

Barog Railway Station

Barog in Himachal Pradesh is a little railway station which is famous for its elaborate history. The railway station is surrounded by beautiful mountains. It is also famous for the ghost of its engineer which is said to be haunting the railway station. The station is also famous because of various folklores surrounding it.