Mudda examines veracity of Moody’s rating that has resulted in boost to Modi government, wonders if human indicators were taken into account
International credit rating agency Moody has appreciated the economic reforms done by the Modi government, demonetisation and the new Goods and Services Tax. These new ratings have brought the Modi government a lot of relief at a time it has been facing nationwide criticism for its economic decisions. The Moody ratings have changed in 13 years. The ratings show that the Modi government’s economic decisions have brought short-tem discomforts but will be very helpful in the long run.
Friday’s edition of Mudda discussed these upgraded ratings of Moody coming as a life-saver for the Modi government. The show was anchored by Himanshu Dixit. The panellists were BJP spokesperson Ashwini Upadhyay, political analyst Atul Chandra, Pradeep Gupta of the Market Association, Delhi, Congress spokesperson Surendra Rajput, economist JD Agrawal and APN consulting editor Govind Pant Raju.
Rajput brought into discussion the repercussions of demonetisation and GST rolled out by the BJP government and asked what it has done for the people working in the unorganised sector. To this, Ashwini Upadhyay replied that nine crore have benefited from Mudra Bank and have started their own businesses. “These people have started their own businesses and have employed many others. The Congress has a problem because they cannot do scams anymore, couldn’t turn their black money into white, and their places are being raided because of corruption,” said Upadhyay.
Rajput hit back at the BJP spokesperson saying that this is year 2017 and the BJP cannot fool people. “If the said data is true then it means that the nine crore people who started their own business would have employed 36 crore people in total. If 36 crore people would have been employed then the unemployment and hunger index of the country wouldn’t have been this poor,” said Rajput.
JD Agrawal made a point in favour of demonetisation and GST that despite all the problems faced by people, the international acclaim for India was increasing and the Sensex was constantly rising. “Fiscal deficit is in control, Sensex is going up, and the rupee is strengthening, which is a very favourable indicator. The government is sensitive to people’s problems which is clear from the revised GST list,” said Agrawal.
However, Atul Chandra shattered the Moody ratings by saying that the ratings do not evaluate internal issues such as the problems faced by the people. He also dismissed the other speakers’ contention that the GST list has been revised to give relief to the people. “All the GST changes have been made keeping in mind the Gujarat elections. People were facing problems since the beginning but the finance minister had clearly said that no changes would be made,” said Chandra.
Chandra also differed on the Sensex strengthening, saying that even if the Sensex showed a hike of 400 points today; it had dipped by 400 points yesterday. “Farmers are dying and there has been no decrease in the petrol price which could have been done,” said Chandra.
Pradeep Gupta presented the view from the world of business that although it is true that many jobs have been lost because of the government’s decision and hasty implementation, the country is going to gain in the long run.
Compiled by Lilly Paul