Moody’s says India’s worsening water shortage may impact its sovereign credit strength
A prolonged heat wave this year has worsened the shortfall, including in Delhi and the southern tech hub of Bengaluru.
A prolonged heat wave this year has worsened the shortfall, including in Delhi and the southern tech hub of Bengaluru.
On the banking front, the report further said the Indian banking system is on a positive outlook because of good economic growth and healthy corporate credit quality.
The rating agency said the country needs the investment to meet the 500 GW target as coal would remain a key source of electricity generation for the next decade
A combination of weak growth in advanced economies, persistent inflationary pressures, the Russia-Ukraine conflict, tight financial conditions, and a subdued growth outlook for China will create a difficult environment for emerging markets (EM) in 2023, said Moody's Investors Service.
The high food and energy prices will curb economic growth and result in social tensions in 2023 and hence the outlook for sovereign creditworthiness is negative, said Moody's Investors Service on Tuesday.
On April 27, 2021, the Indian rupee closed around 74.66 against the US dollar, or about 3 per cent lower than levels in mid-March.
India recorded its highest daily surge in new coronavirus infections since the start of the pandemic, pushing its active case load further past 1 million.
Although the crisis has created substantial credit challenges, the credit downturn is expected to be relatively short-lived.
Moody's has said that India's real GDP may contract by 10.6 per cent in FY21.
The rating firm does not expect the regulators' action to materially affect the bank's existing business and financial profile.
