Booster dose for economy to help improve investor sentiment: Moody's1 min read . Updated: 27 Aug 2019, 11:51 AM IST
- Domestic, external headwinds to persist over the course of the year
- Real GDP growth likely to be 6.4% in 2019-20, 6.8% next year
New Delhi: Rating agency Moody's on Tuesday said it expects the measures announced by the finance ministry on Friday to stimulate the economy, provide some support to investors and boost business sentiment, while the acceleration of the capitalization process of public sector banks will help improve the provision of credit and transmission of monetary policy easing.
William Foster, vice-president, Sovereign Risk Group, Moody’s Investors Service, however, said in a statement said he expected domestic and external headwinds to persist over the course of the year, resulting in 6.4% real GDP growth in 2019-20, before growth picked up to 6.8% next year.
On Friday, finance minister Nirmala Sitharaman announced a slew of measures to boost demand, including a rejig of its spending programme by front-loading it, addressing supply-side bottlenecks and easing bank credit rules, even as she promised to end “tax terrorism" that left India Inc jittery.
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