Forget Moody’s, Focus on the Mood

Context: The recent downgrade of rating from Baa2 to Baa3 for India by Moody, only focuses on short term outlook which is already weak worldwide. India still has opportunities to rescale those ratings.

Bright Opportunities for India:

• Fast Recovery: India not much dependent on exports might reap the benefits of cheap crude and weakened rupee against US Dollar. IMF counts India to achieve fast recovery. 

• Increased investments: Foreign Portfolio Investment has stepped up flow into India due to enhanced confidence.

• Key structural reforms: in mining, agriculture, aviation, and industry have the potential to boost indigenous value addition. 

• These are also essential for completive integration with the global economy.

Way Forward: Robust supply chains must be forged that strengthens India’s stake in global supply chains and network. Our mantra needs to be Intent, Inclusion, Investment, Infrastructure, and Innovation (The 5 I’s).