In India, Moody’s notes encouraging economic prospects, but a worrying political and social climate. This is the opinion given this Friday by the American firm. It’s rare for ratings agencies to get directly involved in politics, but the tense situation in India weighed down his calculation.
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With our correspondent in Bangalore, Como Bastin
The glass can be seen as half empty or half full following Moody’s latest analysis of the Indian economy. On the one hand, India retains its Baa3 sovereign rating, which ranks it among the economies in which it is rather recommended to invest.
Sustainable debt
According to the agency, India’s growth will outpace that of all other G20 economies in the coming years. The work for infrastructure development and digitization carried out by the government facilitates commercial dynamism in the country. Debt is sustainable.
But Moody’s also returns in detail to the deterioration of Indian democracy, worrying about the muzzling of civil society, the repression of the opposition. The situation in Manipur state, where at least 150 people have died in recent months in ethnic clashes, is described as worrying.
Rise of populism
The risk according to the agency concerns the rise of populist politics in India in response to the tensions that run through society. Especially since during this time important challenges are forgotten in the fight against inequalities, access to healthcare and education for all. All this can ultimatelyhurting the economy.
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