While acknowledging that both structural, as well as cyclical factors have led to the slowdown in India’s growth, Gene Fang, associate MD – Sovereign Risk Group at Moody’s Investors Service, said that the structural causes are likely to persist longer.“Our own projection would have a slight rebound in real GDP growth going into next year but what is concerning for us is there is some of the structural factors driving the slowdown on growth which may even persist longer and we are in a situation where the recovery is dragged… that does raise risk to the overall credit profile,” said Fang in an interview with CNBC-TV18.Moody’s changed its outlook on India to “negative” from “stable” amid concerns that the country’s economic growth will remain “materially lower than in the past”. The outlook partly reflects government and policy ineffectiveness in addressing economic weakness, which led to an increase in debt burden from already high levels, the agency said.Close Talking about government measures, Fang said, “The government measures will have an effect and that’s probably behind incorporated into our expectations for pickup in growth going into next year, but at the same time there is a lot of risk to that growth… Read full this story
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