China's condition is battered in front of Indian economy, Moody's also expressed such confidence - Newztezz Online


Saturday, August 19, 2023

China's condition is battered in front of Indian economy, Moody's also expressed such confidence

India's economy is on the way to become the third largest economy in the world in the next 5 years. It is growing at the fastest pace in the world, and now the global rating agency Moody's has also approved it.

In front of the Indian economy, at this time many economies of the world are flooding. After Corona, where the Indian economy is growing continuously and remains the fastest growing economy in the world. On the other hand, the condition of China is battered and now this rating of Moody's has further confirmed this thing.

Moody's has retained India's 'BAA3' rating. However, at the same time, Moody's Investors Service has also expressed concern about the coming down of growth in the last 7 to 10 years and increasing debt burden, despite India's economy growing at a very fast pace.

Debt a concern with growth

Moody's said in its statement that India's rating remains intact at Baa3. Along with this, the attitude towards the economy has also remained stable. The fast growing economy of the country will gradually help in increasing the income level, whose overall benefit will be in the form of flexibility in the economy. The advantage of this will be that gradually the revenue deficit of the government will come down, and the debt situation will stabilize, which is very high at present.

However, Moody's has praised the Modi government's policy of emphasizing on infrastructure. He said that this has increased capital expenditure in India, which has improved India's logistics performance. It has improved the quality of infrastructure related to trade and transport.

China's condition battered in front of India

On the other hand, Moody's has expressed concern about China's economic condition in its report. Moody's says that after Corona's attack, China's economy is in a very bad condition. Unemployment is at its peak in China and the situation is such that it has stopped releasing unemployment figures as well. At the same time, investors are slowly moving away from China and China is under the burden of heavy debt, which may increase further in the coming times.

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