Moody’s Has Rated Modi’s Handling Of Indian Economy Step Above Junk: Rahul Gandhi
Lack of support to the poor and the MSME sector means the worst is yet to come, Congress leader Rahul Gandhi says on Twitter.
Congress leader Rahul Gandhi on Tuesday voiced concern over the state of the Indian economy, saying Moody's Investors Service has termed its handling by Prime Minister Narendra Modi "a step above junk".
He said lack of support to the poor and small and medium industry indicates that the worst is yet to come. "Moody's has rated Modi's handling of India's economy a step above JUNK. Lack of support to the poor and the MSME sector means the worst is yet to come," he said on Twitter.
On Monday, Moody’s downgraded India’s sovereign credit rating for the first time in more than two decades, saying that policymakers will be challenged to mitigate risks of low growth, deteriorating fiscal position and financial sector stress.
India’s sovereign credit rating now stands at Baa3 from Baa2—just a notch above ‘junk’ status. Moody's had last downgraded India's rating in 1998.
Also Read: Why Moody's Sees A Prolonged Low-Growth Period For India
Moody's estimates India GDP to shrink by 4% in FY21—the first full fiscal contraction in more than four decades due to a prolonged period of slow growth.