A slap on criticizers - Now Moody also approves Modi’s GST

While political parties are making some considerable efforts to win the elections this year, Modi has achieved a milestone with India’s sovereign ranking being upgraded by Moody recently! Political parties have been attacking PM Modi’s decision of regulating GST, but now it’s a big slap on their faces as it has now been declared as the significant reason behind India’s economic growth!

GST as well as demonetization received intense criticism as the economic growth dropped and inflation rates increased! However, after receiving a green flag from Moody, Modi’s political party BJP is believed to get a huge lift in upcoming elections!

Here is a little summary what the Moody’s matter is all about!

If you are unaware, recently, Moody’s analytics, a risk analysis giant upgraded the ranking of Indian sovereignty. This has happened after a span of 14 years which is a great achievement! Along with this upgradation, Moody also praised GST and demonetization which was highly criticized by many political parties!

This sudden upgradation and praise is sure to benefit Modi’s political party BJP while shutting down the criticizers. Everyone is now keen to know how the upcoming elections will get affected with this huge announcement!

Here are a few points which raised eyebrows after Moody’s sovereign upgradation for India!

Criticism for GST and Demonetization:

The GST has been criticized since the drop in economic development to 5.7% was discovered which is the lowest growth ratio was in last three years. GST was considered as an economic failure. The low GDP concerned a lot of people along with the finance minister.

While demonetization was introduced, it took time to adjust to our economy and there were issues like increase in unemployment ratios, decrease in GDP, low investments etc. Due to the demonetization and GST, the political party BJP of Modi was widely criticized by the opposition!

Moody’s Applauds:

• The upgrade of India’s sovereignty slapped the political parties which called GST as a chaotic event! Moody commended the efforts of Modi to develop the non-performing assets and tax base which will improve the growth potential of India in different fields.
•  Along with GST, demonetization was praised by moody as one of the best steps to improve the growth potential of India by getting rid of many barriers! Demonetization is praised as an admirable step for removing corruption, increasing growth and economic development, escalating digital economy, increasing international and domestic investments and improving the tax collection system!

 Benefits of this Upgrade:

• The upgrade will improve economic growth and development of the country while raising employment opportunities. The improvement in tax collection and improvement in the non-performing assets is sure to reflect a bright future!
• The upgrade occurred at the right time when the political parties were accusing BJP and the elections are on the head! No doubt, BJP is expected to get a huge benefit through this upgrade!

 However, there are certain conditions which are still raising questions. Other global rating agencies ranked India in the lowest grades; the high debt to GDP ratios of India, prospect to miss the fiscal deficit target etc can affect the situation!

In a scenario where opposition parties were attacking BJP for GST and demonetization failures, this upgrade will play an interesting role and it would be great to see how it will benefit Indian economy and Modi’s political party!

Also check my other post: Angry with Modi? Think Again..