By Mahima Kapoor
India’s rating upgrade by Moody’s Investors Service is “a fitting answer to the Modi government’s critics”, said well-known investor Rakesh Jhunjhunwala.
The move wasn’t a surprise for him, given a slew of reforms rolled out by Prime Minister Narendra Modi and his government, Jhunjhunwala said in a conversation with BloombergQuint. Some of these reforms include the Goods and Services Tax, public sector bank recapitalisation and measures to resolve the banking sector’s bad loans.
What is music to my ears is that an international agency will recognise what I’m saying.”
Jhunjhunwala had said multiple times that crude oil, which has risen over the last few months to hover around $55, will not go above $60-65 a barrel at the most. “There is enough oil in this world” and the market has already factored in rising prices, which may make India exceed its 3.2 percent fiscal deficit target by a tenth of a percentage point or so, he said.
There is no shortage of capital in the country, he said. “If there is demand and ease of doing business, capital will come.”
This article has been previously published on Bloomberg Quint.
Photo credit: U.S. Consulate Mumbai via VisualHunt.com / CC BY-NC-SA