Persistent inflation hurting India's sovereign ratings: Moody's

Tags: Economy
India's sovereign ratings are constrained by persistently high inflation that is weighing on an otherwise promising economic recovery, Moody's Investors Service said in a release on Thursday.

"Recurrent inflationary pressures ... keep domestic capital costs high, erode domestic purchasing power as well as savings and lower international competitiveness," the rating agency said.

Moody's also said the supply response to inflation has been weak and the government-directed food distribution system has made worse the food supply constraints.

Without a significant increase in food output, the risk from continued inflation could limit India's growth prospects, Moody's said.

EDITORIAL OF THE DAY

  • Modi’s interview with Times Now failed to reveal the mind of the man

    For a prime minister, who prefers monologue and one-way conversation on twitter and radio to long-winded one-on-one interviews, Narendra Modi’s 85-m

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Teachers must accept innovation

University teachers had been complaining for the past two years ...

Zehra Naqvi

How does a bird learn to sing?

There’s nothing like bir­dsong to give you a taste of ...

Dharmendra Khandal

The unfortunate death of a tigress & its repercussions

In nature it is not easy to gather investigative evidences, ...