November 13, 2018

The Moody’s curse on the Indian economy

Almost a year ago, ratings company Moody’s Investors Service Inc. upgraded India’s sovereign debt rating, making India only the second large emerging market (among emerging markets in the G20 group of economies) to have improved its rating in the past five years. Since then, only one more major economy, Argentina, has been upgraded by Moody’s while two others— Turkey and Italy—have been downgraded.

India, meanwhile, has witnessed a massive exodus of foreign investors since the upgrade. According to data sourced from the Institute of International Finance Inc. (IIF), India has witnessed the sharpest non-resident portfolio outflows (equities and debt combined) among major emerging market (EM) economies over the past year.


No comments:

Post a Comment

Share this...