Moody's outlook downgrade for India: A wake up call, but not justified

Moody's has not considered the fact that the government has been addressing various issues to help the economy.

The lowering of the sovereign credit rating outlook of India from stable to negative by Moody’s, though not really justified at this point, is a grim reminder of the state of the economy and the need to accept that all is not well.

The lowering of rating outlook does not seem to be justified because the conditions that have been highlighted for change in outlook have been known for quite some time now. Also, the fact that the government has been addressing various issues sequentially has not been considered by the rating agency, which could be a bit disappointing. It