Indian government counters Moody's downgrading, says proactively taken policy decisions

'The Government has undertaken series of financial sector and other reforms to strengthen the economy as a whole. Government of India has also proactively taken policy decisions in response to the global slowdown,' according to a statement by the Finance Ministry here.

These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments, it added.

The government said the fundamentals of the economy remain quite robust with inflation under check and bond yields low. India continues to offer strong prospects of growth in near and medium term, it stressed.

'Government of India has noted that the Moody’s Investors Service has today changed the outlook on the Government of India’s ratings to negative from stable while keeping the foreign-currency and local-currency long-term issuer ratings unchanged at Baa2,' the ministry said.

However, India continues to be among the fastest growing major economies in the world, India’s relative standing remains unaffected.

'IMF in their latest World Economic Outlook has stated that Indian Economy is set to grow at 6.1 per cent in 2019, picking up to 7 per cent in 2020. As India’s potential growth rate remains unchanged, assessment by IMF and other multilateral organizations continue to underline a positive outlook on India'.