Sitharaman extols Indian economy, says moving forward

New Delhi [India], November 24 (ANI): Defence Minister Nirmala Sitharaman on Friday extolled the Indian economy and termed it to be strong and moving forward besides having the potential of growing at a very high rate.

"Whether it's World Bank rankings on ease of doing business, Moody's rating or S&P now, it is clearly indicating that the Indian economy is strong, moving forward and has the potential for growing at a very high rate," the defence minister said in a statement.

Sitharaman said, "S&P Global has lauded the Narendra Modi government for passing a number of reforms that address long standing impediments to the country's growth, whilst affirming India's existing rating at BBB-/A-3."

The statement further reads that the report has also appreciated India's efforts in improving monetary credibility and has noted the presence of strong democratic institutions and free press.

"The report has underlined that India's government revenue as percentage of Gross Domestic Product (GDP) is low. It further asserts that effort of the government to expand tax base by demonetisation has increased the number of tax registrants and that introduction of Goods and Service Tax (GST) will further accelerate government revenue," it added.

Sitharaman also said that reforms such as demonetisation and the GST may have led to some quarterly cooling but the medium term outlook for growth in India is favourable.

"Reforms such as demonetisation and the GST may have led to some quarterly cooling but the medium term outlook for growth in India is favourable. This is based upon private consumption, ambitious public infrastructure investment program and a bank restructuring plan that will help investments," she said.

She also said, "S&P has hence inferred that over the next two years, growth in India will remain strong and India will maintain its sound external accounts position."

In her concluding statement, she said, "After World bank's recognition of India's reforms in improving ease of doing business and Moody's upgradation for India's sovereign credit ratings. S&P too has recognised the strides the Indian economy has made under the leadership of Prime Minister Modi."

Earlier, financial services company S&P Global Ratings retained its outlook on India as stable and kept the rating unchanged at BBB-.

While the agency retained its rating on India, it also lauded the Modi-led government's fiscal consolidation drive under which multiple reforms have been undertaken towards the path of a favourable economy.

The report noted that despite two quarters of weaker-than expected growth, India's economy will grow robustly in 2018-20, and foreign exchange reserves will continue to rise.

It further stated that over the next two years, growth will remain strong; India will maintain its sound external accounts position and fiscal deficits will remain broadly in line with the expectations. (ANI)