Credit rating agency Moody’s Investors Service upgraded Indian government’s debt ratings after almost 14 years. The ratings upgrade reflects our expectation that continued progress on economic and institutiol reforms will enhance India’s high growth potential and its large and stable fincing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium team.
Moody’s has laid emphasis on specific economic reforms such as GST. If India is to fulfil its economic potential, there is enother critical reform needed. Economic prosperity comes on the heels of increased productivity. This in turn depends on a skilled workforce. The government urgently needs to work on upgrading Indian’s abysmal education standards. Microsoft co-founder Bill Gates has pertinently drawn attention to India’s disappointing progress in this area. Getting this reform right is as important as economic changes to future prosperity. On balance, Moody’s upgrade shows that optimism in India’s long term is well founded. But things won’t happen on autopilot. It is up to the Centre and state governments to see through transformatiol changes and actualise India’s potential.
Satish Kumar Sarma,
Kalyanpur, Biswath Chariali.