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Ahead of national election; Moody’s had this to say of Indian economy

some measures to stabilize rural economy as it was the worst hit by demonetization step

A year ahead of national election, the central government may have reasons to rejoice as the Moody’s Investors Service has said that Indian economy is starting to recover from the negative impact of demonetization.

It also said that disruption caused by GST roll out has also now blunted and added that the GDP growth estimates could be kept unchanged at 7.6 per cent for 2018.

In its global growth forecasts for 2018 and 2019, Moody’s said the Budget for fiscal year beginning April 1 (2018-19) includes some measures to stabilize rural economy as it was the worst hit by demonetization step.

It need be mentioned that

it was in November last year that the Moody’s had raised India’s sovereign rating for the first time in 13 years

.

It had cited that the growth prospects have improved with continued progress on economic and institutional reforms.

Moody’s said stronger inflationary pressures would lead to a steady convergence of the monetary policy outlooks of global central banks over the next two to three years.

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