FinMin says fundamental of Indian eco robust, reforms to stimulate investments

The government on Friday reacted strongly to Moody's Investor Service changing its outlook on India's ratings to negative, saying the fundamentals of the economy remain quite robust and series of reforms undertaken recently would stimulate investments.

In a statement soon after Moody's lowered the outlook to negative from stable, the Finance Ministry said India continues to be among the fastest-growing major economies in the world.

"India's relative standing remains unaffected," it said citing International Monetary Fund's (IMF) recent World Economic Outlook putting Indian economic growth at 6.1 per cent in 2019 and rising to 7 per cent in the year after.

"As India's potential growth rate remains unchanged, assessment by IMF and other multilateral organisations continue to underline a positive outlook on India," it said.

The ministry said 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. These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments," it 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 the near and medium term.