Narendra Modi ‘solely responsible’ for economic mess says Congress, raises doubts over ratings
New Delhi: The Congress on Friday held Prime Minister Narendra Modi “solely responsible” for creating a “mess” of the economy, after Standard & Poor’s kept its sovereign rating for the country unchanged.
Senior Congress leader Anand Sharma the government was taking shelter under these “dubious” certificates from rating agencies. Rating agency Moody’s had on last Friday raised India’s sovereign rating from the lowest investment grade of Baa3 to Baa2 – the first upgrade in almost 14 years.
Sharma accused Modi of being solely responsible for creating a “mess” of the economy and charged him with being in “arrogant denial”.
“Mr Prime Minister, the ground is shaking, and people feel betrayed. People have downgraded the government on its economic performance, these dubious upgrades don’t matter,” Sharma tweeted.
He said that a “sudden flurry” of certificates from credit rating agencies is the “only fall back” of a government which has derailed India’s economy.
Sharma alleged that GDP has sharply fallen, jobs have been “destroyed” in millions and business have shut down.
The leader also further raised questions over the ratings agencies waking up when all the parameters of the Indian economy are “in the red”. “About 3.72 crore jobs have been lost in the MSME/unorganised sector. Investment rate has plunged by 7%, credit offtake falling to a 65-year low. This calls into question the very credibility of these rating agencies,” he said on the micro-blogging site.
Declining to follow Moody’s recent India rating upgrade, Standard & Poor’s on Friday kept its sovereign rating for the country unchanged at the lowest investment grade of ‘BBB- minus’ citing high government debt and low income levels.
Lauding it, defence minister Nirmala Sitharaman said that the rating is a reflection of the agency’s appreciation of the steps taken by the government to keep the economy stable and ensure a high growth trajectory.
“The S&P had inferred that over the next two years, growth in India will remain strong and the country will maintain its sound external accounts position,” Sitharaman said.
Union minister Mukhtar Abbas Naqvi lauded it, saying “After Moody’s, S&P gives Narendra Modi govt thumbs up, keeps India’s outlook stable.