Wednesday 23 April 2014
News updated at 4:15 PM IST
Weather
Max: 35.5°C
Min : 21.5°C
In Bangalore
Partially cloudy

Improved growth prospects for India in 2013: Moody's

New Delhi, Dec 11, 2012 (PTI)

Withdrawal of support to government by an 'obstinate coalition partner' and flurry of reforms have improved India's growth prospects in 2013, said global rating agency Moody's today.

"...(growth prospects have improved) with a new finance minister, the withdrawal of an obstinate coalition partner and a flurry of pro-business reforms designed to lift the economy from its funk...These moves are working," Moody's said in a report.

The government has been able to push through economic reforms, especially allowing foreign investment in multi-brand retail, after withdrawal of support by Trinamool Congress.

The government had also expressed its commitment to raise FDI cap in the insurance sector. This would require approval of Parliament.


Noting that "policy missteps and political paralysis" crushed business confidence and investment in 2012, the Moody's report said, "India should ...enjoy a better 2013, though for different reasons."

The report said Asia's economies have weathered the global downturn and will enter 2013 in comparatively good shape. Risk levels appear manageable, domestic policy settings remain highly accommodative, and the global outlook has begun to stabilise.

P Chidambaram took over the finance portfolio in August when the then Finance Minister Pranab Mukherjee became the Presidential candidate. Mukherjee was later elected as President.

The rating agency further said that near-term risks around India's fiscal and external deficits have receded. "Business groups are more upbeat; this will translate into better investment and GDP growth, but not until well into 2013. The moves help to lock in our longer-term outlook," the it said.

Go to Top

Photo Gallery
Britain's Prince William and his wife Catherine, Duchess of Cambridge, pose in front of the Uluru...

Britain's Prince William and his wife Catherine, Duchess of Cambridge, pose in front of the Uluru...

Britain's Catherine, Duchess of Cambridge, (C) talks with Aboriginal women during a visit ...

Britain's Catherine, Duchess of Cambridge, (C) talks with Aboriginal women during a visit ...

Libyan soldiers take positions during a training exercise directed by the Italian Army's ...

Libyan soldiers take positions during a training exercise directed by the Italian Army's ...

Students from Danwon high school pay tribute in Ansan, at a temporary group memorial altar ...

Students from Danwon high school pay tribute in Ansan, at a temporary group memorial altar ...

Family members of a missing passenger of capsized passenger ship Sewol which sank last ...

Family members of a missing passenger of capsized passenger ship Sewol which sank last ...

A female orca, or killer whale, named Mika catches a sea lion pup along the shore of Punta ...

A female orca, or killer whale, named Mika catches a sea lion pup along the shore of Punta ...

Indianapolis, IN, USA; Indiana Pacers guard George Hill (3) takes a shot against the Atlanta ...

Indianapolis, IN, USA; Indiana Pacers guard George Hill (3) takes a shot against the Atlanta ...

Jon Bon Jovi walks through the lobby of the JBJ Soul Homes during the grand opening, Tuesday ...

Jon Bon Jovi walks through the lobby of the JBJ Soul Homes during the grand opening, Tuesday ...

This image released by The Weinstein Company shows Keira Knightley, left, and Adam Levine in a scene

This image released by The Weinstein Company shows Keira Knightley, left, and Adam Levine in a scene

This image released by The Weinstein Company shows Marion Cotillard in a scene from 'The Immigrant.'

This image released by The Weinstein Company shows Marion Cotillard in a scene from 'The Immigrant.'

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523