Rein in BJP members or risk losing credibility: Moody's to Narendra Modi

Discussion in 'Politics & Society' started by anoop_mig25, Oct 30, 2015.

  1. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
    http://www.ibnlive.com/news/busines...dibility-moodys-to-narendra-modi-1158267.html

    Posted on: 12:01 PM IST Oct 30, 2015 ,IBN,PRESS TRUST OF INDIA

    Against the backdrop of controversies like on beef, Moody's Analytics on Friday cautioned Prime Minister Narendra Modi that the country may lose domestic and global credibility if he doesn't rein in the members of his party.

    In a report titled India Outlook: Searching for Potential, Moody's Analytics said for the country to reach its growth potential it has to deliver the promised reforms. "Undoubtedly, numerous political outcomes will dictate the extent of success," it said.

    The ruling BJP does not have a majority in the Rajya Sabha and crucial reforms bills has been met with an obstructionist opposition.

    "But in recent times, the government also hasn't helped itself, with controversial comments from various BJP members. While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions.

    "Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility," Moody's said.

    It projected that India's GDP growth for September quarter at 7.3 per cent, while for the full fiscal it would be 7.6 per cent. "Key economic reforms could deliver greater potential GDP, as they would improve India's productive capacity. These include the land acquisition bill, a national goods and service tax, and revamped labour laws. They are unlikely to pass through Parliament in 2015, but there is an even chance of success in 2016," Moody's said.

    As regards interest rates, it said low rates will buttress the economy in the short-term but reforms are needed to reach long-term potential growth. The Reserve Bank kick-started the recovery by cutting the repo rate by 1.25 per cent in 2015.

    It said positive signs are emerging with the State Bank of India, the nation's largest bank, cut its base lending rate earlier in October.

    "Capacity utilisation has been low across industries this year. The capital expenditure pipeline is running dry. However, interest rate cuts should encourage investment, as will the softer inflation profile," it added.

    Moody's Analytics, the research and analysis arm of Moody's Corporation, projected the RBI to keep rates on hold for the remainder of 2015, with a small chance of another cut early 2016.

    It, however, cautioned that Indian equities have suffered loss in global and domestic investors.

    "The Sensex has fallen around 11 per cent since the euphoria behind the new government propelled the stock market. But consistent failure to deliver key economic reforms has faded the optimism," it added.

    Narendra Modi-led government assumed office in May 2014. As regards the impending US rate hike, it said: "The rupee will likely come out relatively unscathed thanks to the RBI's bulging foreign exchange reserves stockpile." The slowdown in global growth will prove a major headwind for Indian exporters, Moody's said, adding that the fall in exports from 2015 is expected to continue in 2016.

    The newfound stability in India's current account balance could come under renewed stress if global growth slows more.

    So far, lower oil prices have buttressed the trade balance. But a rebound in prices if oil supply rebalances could see the trade balance deteriorate," Moody's said. Moody's Analytics said there are indications that investors have been less optimistic about India's economic prospects. Net financial flows into equity were around $16 billion in 2014.

    However, they are unlikely to reach those highs in 2015. The same can be said about financial flows into India's debt market, it added. RBI is consistently looking to improve India's banking and financial structures, Moody's said, adding We believe a move towards full capital account liberalisation is inevitable in India.

    "This will likely occur in the next two to four years. A freer capital account will give Indian companies greater access to overseas markets, lower borrowing costs, and facilitate credit growth-a key ingredient to increasing investment," it added.

    ***********************************************************************************************************************************

    Well its PTI and IBN so i take it with pinch of salto m but then one tiwtter account with pro-RW says its warning shot from cartel to modi gov to works as per cartel wish or be ready to face consequnces.

    Even PBhusan has posted something similar on tiwwtter that viloence is going to rise in coming months and this can shun all investors
     
  2.  
  3. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,007
    Likes Received:
    2,250
    http://indianexpress.com/article/india/india-news-india/moodys-to-modi-rein-in-members-or-risk-losing-credibility/

    Moody’s to PM: Keep members in check or risk losing credibility


    By: ENS Economic Bureau | New Delhi | Published:October 31, 2015 2:45 am

    Growing voices in the country against rising intolerance, on Friday, found an echo in Moody’s Analytics— a division of Moody’s Corporation — as it called for Prime Minister Narendra Modi to keep his party members “in check or risk losing domestic and global credibility.” It also blamed the government for its failure to deliver on promised reforms.

    While the government does not have a majority in the upper house of the Parliament and has been unable to pass through important legislation, the report titled ‘India Outlook: Searching for Potential’ also said that the controversial comments from various BJP members may not just lead to a possible increase in violence but may also result in stiffer opposition for the government in the Upper House as debate turns away from economic policy.

    “While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions. Along with a possible increase in violence, the government will face stiffer opposition in the Upper House as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility,” said Moody’s Analytics.

    The report not only blamed the government for failing to deliver on the promised reforms but also raised questions over its ability to deliver on them going forward.

    “Overall, it’s unclear whether India can deliver the promised reforms and hit its growth potential. Undoubtedly, numerous political outcomes will dictate the extent of success,” said the report.
    It added that while lower interest rates may support the economy in the short-term, reforms are needed to reach long-term potential growth and therefore the reform agenda needs attention.

    Stating that the ruling coalition does not have a majority in the upper house to pass crucial reforms, the report also pointed out the importance of the ongoing elections in Bihar where BJP is not the incumbent and a victory there for the party will help secure a majority in the upper house which is critical for passing important legislation. “The state election in Bihar—one of India’s largest and poorest states—could prove pivotal to Modi’s leadership. The BJP is not the incumbent, so a win here would help secure an upper house majority,” said the report adding that better political outcomes could help India achieve reforms.

    Projecting a GDP growth of 7.3 per cent for the quarter ended September 2015 and 7.6 per cent of FY16, the report said that key economic reforms such as — land acquisition bill, a national goods and service tax, and revamped labour laws— could help achieve higher GDP growth rate. “They are unlikely to pass through Parliament in 2015, but there is an even chance of success in 2016,” said Moody’s Analytics.

    The research arm also said that the external headwinds are growing stronger and slowdown in global growth is hurting India’s exporters.

    “The slower than expected US growth trajectory and sluggish euro zone growth will drag on external demand,” the report said. It also said that while lower oil prices have buttressed the trade balance, a rebound in prices could see the trade balance deteriorate.
     
  4. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,007
    Likes Received:
    2,250
    Beautiful, tell Modi to resign and go home.

    :troll:
     
  5. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,007
    Likes Received:
    2,250
    OR

    It is the time to reinterpret Gandhi's Sarvodaya concept.
     
  6. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,007
    Likes Received:
    2,250
  7. topgear

    topgear Regular Member

    Joined:
    Apr 15, 2014
    Messages:
    42
    Likes Received:
    32
    Moody's credibility itself was eroded in 2008 and is commenting on internal indian politics, lol.
    why these Institutes don't comment on saudi ever. wahabian money can make them do whatever.

    Sent from my YU5510 using Tapatalk
     
    thethinker, saty and indiatester like this.
  8. thakur_ritesh

    thakur_ritesh Administrator Administrator

    Joined:
    Feb 19, 2009
    Messages:
    4,434
    Likes Received:
    1,719
    Location:
    Land of the GODS - "Dev Bhomi".
    USA's way of saying sort out the things or you will be hit hard where it matters the most, something Obama administration might not be comfortable saying as openly, though the message must have been sent across through private conversations.

    Modi's larger domestic appeal has been development, opening up the economy, investments, what he terms "acche din", a message he carries overseas with each of his trip there and I seriously doubt he can even imagine risking all this.

    It is amazing how the US operates, the extent of influence they have, and the means they can use to have things done. If this is a sustained push expect others to also start making noise with similar tones, this seems just the tip with much more to come from others.
     
    raja696 likes this.
  9. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,007
    Likes Received:
    2,250
  10. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
  11. thethinker

    thethinker Senior Member Senior Member

    Joined:
    Dec 18, 2013
    Messages:
    2,196
    Likes Received:
    2,791
    Location:
    India
    This is how bazaru media distorts pro India pro development news. A personal opinion by a junior associate in some firm is passed off as official commentary.

    Good for GoI to issue a rebuttal just to make junta aware of such media games.

    Government Dismisses Moody's Report, Calls it Opinion of Junior Analyst


    http://www.ndtv.com/india-news/gove...nior-analyst-1240136?pfrom=home-lateststories

    New Delhi: Prime Minister Narendra Modi's office today tore into what it called "irresponsible and distorted reporting by certain sections of the Indian media" in connection with a Moody's Analytics report that was critical of the government.

    "The government notes with distress that the personal opinion of a junior analyst was passed off as a commentary on India by a Rating Agency by the media to buttress the narrative it wants to portray," the Prime Minister's Office said in a statement.

    Calling the report the "personal opinion of a Junior Associate Economist employed with Moody's Analytics", the statement said it was "surprising that no due diligence was done" and "readers were not informed" about the difference between Moody's Analytics and Moody's Investor Services.

    Such episodes, said the PM's office, "seriously hamper the credibility of the media."

    The report attributed to Moody's Analytics had on Friday said that PM Modi must keep BJP members in check or risk "losing domestic and global credibility".

    Titled 'India Outlook: Searching for Potential', the report said the assembly elections in Bihar could "prove pivotal to Modi's leadership".

    The report said: "While Modi has largely distanced himself from the nationalist jibes, the belligerent provocation of various Indian minorities has raised ethnic tensions. Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility."

    It concluded: "Overall, it is unclear whether India can deliver the promised reforms and hit its growth potential. Undoubtedly, numerous political outcomes will dictate the extent of success."

    Moody's Analytics is the economic research and analysis division of Moody's Corporation. It says its commentary is independent and does not reflect the opinions of Moody's Investors Services, the credit ratings agency which is also a subsidiary of Moody's Corporation.

     
  12. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,543
    Likes Received:
    6,545
    Moody's had an A rating on subprime debt that almost bankrupted America. Moody's lost credibility with investors in USA years ago so now I guess these losers are more active abroad .


    Sent from my iPhone using Tapatalk
     
  13. spikey360

    spikey360 Crusader Senior Member

    Joined:
    Jan 19, 2011
    Messages:
    2,285
    Likes Received:
    2,116
    Location:
    The Republic of India
    I am happy that Moody has given a bad review to 'Modi'. The enemies of India are slowly shedding their masks and baring their claws. We should take note and spare none of these vermin when we strike back.
     
  14. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

    Joined:
    Nov 28, 2010
    Messages:
    6,207
    Likes Received:
    6,497
    thakur_ritesh likes this.
  15. asingh10

    asingh10 Senior Member Senior Member

    Joined:
    Sep 17, 2015
    Messages:
    1,717
    Likes Received:
    3,160

    All we ever do is fire fighting and all the other side has to do is spread rumors like this one.
     
  16. asingh10

    asingh10 Senior Member Senior Member

    Joined:
    Sep 17, 2015
    Messages:
    1,717
    Likes Received:
    3,160
    Before reining in the fringe, rein in the awaara media that internationalizes every domestic issue.
     
    Alien likes this.

Share This Page