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.


  • With IT firms pursuing independent business models, Infosys is no longer a bellwether

    The earnings season kicked off on Monday with technology major Infosys announcing its second quarter results that were more or less on expected lines


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Taslima Nasreen

Saudi Arabia will never be shamed

The health minister of Saudi Arabia Khalid Al-Falih has purportedlysaid ...

Kuruvilla Pandikattu

Our mood effects our walking style

Our mood can affect how we walk. We walk lazy ...

Dharmendra Khandal

Use technology wisely to save earth's treasures

Wildlife biologists are certainly getting inspired by our armed forces’ ...


William D. Green

Chairman & CEO, Accenture