Connect with us

Business

Major reforms undertaken; India deserves rating upgrade: Economic Affairs Secretary

Published

on

IST


New Delhi:Days after Fitch Ratings denied India a rating upgrade for the 12th year in a row, the government said the country “deserves” an upgrade on the strength of “major structural and fundamental reforms” undertaken.
In an interview to PTI, Economic Affairs Secretary Subhash Chandra Garg said Fitch’s action did not come as a surprise as the rating agency had in discussion earlier indicated its focus on level of government debt even though it had a very favourable view on India’s economy.
“We truly believe, we honestly believe India deserves an upgrade. The performance, macroeconomics parameters everything has stabilised,” he said.
The government, he said, will continue engage with rating agencies and “try to convince” them of “achievement and real performance in the economy.”
“The kind of major structural and fundamental reforms undertaken in the country so far are truly global, they are really big,” he said, adding that the Goods and Services Tax (GST) transformed the indirect taxation system in the country and the Insolvency and Bankruptcy Code is transforming the way the country resolves its non-performing assets.
Also, the RERA (Real Estate (Regulation and Development) Act) has transformed the realty sector. National biometric ID Aadhaar has institutionalised how to deal with people’s identity. He also cited the recently promulgated legislation on dealing with economic offenders fleeing the country.
“One thing I would like to stress is that the kind of reforms undertaken are truly phenomenal and big,” he added.
Fitch had retained India’s sovereign rating at BBB-, the lowest investment grade, with a stable outlook, saying weak fiscal balances continue to constrain its ratings. It had cited government debt amounting to 69 per cent of GDP in 2017-18 to buttress its point.
The government had made a strong pitch with Fitch for an upgrade in ratings after rival Moody’s Investors Service in November last year gave the country its first sovereign rating upgrade since 2004.
Fitch had last upgraded India’s sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.
Fitch had changed the outlook to negative in 2012 and then again to stable in the following year, though it kept the rating unchanged at the lowest investment grade.
While Moody’s had in November 2017 raised India’s sovereign rating from the lowest investment grade of ‘Baa3’ to ‘Baa2’ — the first upgrade in almost 14 years — and changed the outlook from stable to positive, S&P refrained from upgrading the rating from ‘BBB-’ citing high government debt and low income levels. S&P has maintained ‘BBB-’ rating on India since 2007.
Asked about the expectation from Standard and Poor’s, Garg said the Finance Ministry is in conversation with them. “We have provided all information to them. We will meet them again. Judgement is finally their’s,” he said.


Comments

Business

RBI needs to ensure stability: Shaktikanta Das

Agencies

Published

on

New Delhi: The head of the Reserve Bank of India (RBI) said he would take the steps necessary to maintain financial stability in the country and help create favourable conditions for growth.

India’s economy has grown because of measures such as the nationwide goods and services tax and the insolvency and bankruptcy code that prevents wilful defaulters from bidding for stressed assets, Shaktikanta Das said in his address to an investor roundtable.

The country’s growth story is backed by its strong domestic fundamentals, he said, citing lower inflation.

 

Annual retail inflation rate dropped to an 18-month low of 2.19 per cent in December, strengthening the views of some economists that the central bank could ease monetary policy next month.

India’s top business groups on Thursday urged the central bank to cut its benchmark interest rate by at least half a percentage point and lower the cash reserve ratio it imposes on banks.

The country also needs to watch out for any sudden turbulence in the gloal financial market, Das said.

Continue Reading

Business

Centre removes two PNB executive directors for lapses in Rs 13,500-cr fraud

Agencies

Published

on

Chennai:The Central government has removed two Punjab National Bank (PNB) Executive Directors — Sanjiv Sharan and K.Veera Brahmaji Rao — for the lapses in the Rs 13,500 crore fraud allegedly perpetrated by absconding diamantaire Nirav Modi.

The PNB has intimated the action to the stock exchanges.

“We welcome the Central government’s action to dismiss the two Executive Directors. The scam of such proportions could not have happened without the knowledge of the top management,” C.H. Venkatachalam, General Secretary, All India Bank Employees’ Association (AIBEA), told IANS.

 

“Perhaps for the first time, the Centra has removed the Executive Directors of a nationalised bank under the Nationalised Banks (Management and Miscellaneous Provision) Scheme, 1970. All these days it was said the top management of government-owned banks — Chairman, Managing Director, Executive Directors — are governed only by the contract of appointment.

“It is also good that the central government has followed the due process of giving the two PNB Executive Directors opportunity to put forth their views before dismissing them,” Venkatachalam added.

According to the Central government’s notification, on July 3, 2018, Sharan and Rao were issued a show cause notice as to why they could not be removed from office for having failed to exercise proper control over the functioning of PNB, thus enabling the fraud through the misuse of SWIFT at the bank’s Brady House branch in Mumbai.

After considering Sharan and Rao’s replies and the comments of the bank’s Board, the Centre removed them from office as it found it was expedient in the interests of PNB.

According to the notification, the dismissal of Rao is subject to the outcome of a plea in the Delhi High Court.

“We are happy to see some action being taken. Whether it is only the two Executive Directors and other officials are also involved in the scam has to be probed in full,” Venkatachalam said.

According to him, in the past, low-level officers would have been the scapegoats for such massive scams.

“With the action taken on the top management, people will be satisfied that public sector bank officials are answerable for their lapses,” Venkatachalam added.

Continue Reading

Business

In this new world, data is the new wealth: Ambani

Agencies

Published

on

Mumbai: Reliance Industries chairman and managing director Mukesh Ambani urged Prime Minister Narendra Modi to take steps against ‘data colonisation’, specially by global corporations, stating that Indian data must be owned by Indians.

Invoking Mahatma Gandhi’s movement against political colonisation, Ambani said India now needs a new movement against data colonisation.

“Gandhiji led India’s movement against political colonisation. Today, we have to collectively launch a new movement against data colonisation,” he said Gandhinagar at the Vibrant Gujarat Global Summit.

 

Stressing that, in this new world, data is the new wealth, Ambani said, “India’s data must be controlled and owned by Indian people and not by corporate, especially global corporations.”

He further said, “For India to succeed in this data driven revolution, we will have to migrate the control and ownership of Indian data back to India. In other words, give Indian wealth back to every Indian.”

Stating that the “entire world has come to recognise” Modi “as a man of action”, Ambani said, “Honorable Prime Minister, am sure you will make this one of the principal goals of your digital India mission.”

Later in the day, countering Ambani’s call, Governor – Commonwealth of Kentucky, Matthew Griswold, asked Modi “to think in the opposite” in order to realise the tremendous opportunity that lies in Indo-US partnership.

“Honorable prime minister you have been asked from this stage to think about limiting the amount of competition, limiting the exchange of ideas, information and goods. I would encourage you to think in the opposite,” he said.

While stating that it is important to put the people of India first, Griswold said, “It is also important to put their opportunity and our opportunity as citizens of the world to trade with one another and exchange ideas because iron sharpens iron.”

The greatest possibility comes from the exchange of these idea, he added.

“If we can cut the regulations, cut the bureaucracy, cut the red tape, the opportunity is enormous between our nations,” he added that India is now the 10th largest trading partner for the US and “climbing quickly”.

“The opportunity before us between India and the United States is incredible, but responsibility falls on each of one us, those of us in elected positions, those of you in the industry, those of you who represent various constituencies, we have much work to do…we must do this, ” Griswold said.

Continue Reading

Subscribe to The Kashmir Monitor via Email

Enter your email address to subscribe to The Kashmir Monitor and receive notifications of new stories by email.

Join 980,176 other subscribers

Archives

January 2019
M T W T F S S
« Dec    
 123456
78910111213
14151617181920
21222324252627
28293031  
Advertisement