Modi’s Make In India Working – Says Moody’s

In another all time high for Indian markets, FDI (Foreign Direct investments) in India has reached an all time high with investments touching $ 3 billion in the month of January on a moving average basis. Moody’s has attributed the global investors interest in India due to current government’s liberal policies in the manufacturing sector coupled with Indian economy growing at rate superior to rest of world economies. More Interesting aspects have been noticed in the Moody’s latest released report tiltled "Government of India: Rising Foreign Direct Investment Provides Stable Financing of Current Account Deficit, a Credit Positive".

 Global rating agency – Moody’s, an essential component in the global capital markets, opined that due to rising FDI investments in India , the nation’s dependency on the external financing will reduce subsequently. This trend of increasing FDI investments in India will also place India in a stronger position to face contingent external shocks.The rating agency also believes with ‘Make in India’ kind of initiatives which is actually showing some results the FDI investments can grow from here and these investments will help India strengthen its Balance Sheet. With commodities prices being low and more investments getting parked in India via FDI route, the CAD (current account deficit) may not be a major concern for India and this may augur well for Indian rupee as it may see some strength from here.

Gold imports on decline , crude oil prices being low are two positive triggers working for Indian economy even now and ‘Make In India’ initiative showing some traction can only bring further clarity for those who are sitting on sidelines when it comes to investing in India.