Moody's India rating a step above junk, worst ahead says Rahul Gandhi

New Delhi : A day after global credit ratings agency Moody's Investors Services downgraded India's sovereign ratings as it sees challenges piled up on the country's policy making institutions to mitigate the risks of a sustained period of relatively low growth, Congress leader Rahul Gandhi has said the worst is yet to come as the government has not supported the poor and the MSME sector.

Former President of the Congress Rahul Gandhi tweeted: "Moody's has rated Modi's handling of India's economy a step above JUNK."

"Lack of support to the poor and the MSME sector means the worst is yet to come," added Rahul Gandhi.

Besides, Moody's said the Covid-19 pandemic amplifies vulnerabilities in India's credit profile such as slower growth relative to the country's potential, rising debt and further weakening of debt affordability and persistent stress in parts of the financial system.

Consequently, Moody's downgraded India's foreign-currency and local-currency long-term issuer ratings to Baa3 from Baa2.

Union Home Minister Amit Shah described Rahul as a man with a 'crooked vision' as he branded his suggestions of transferring cash directly into the accounts of the poor and migrant workers as a scheme already rejected by the people of the country.

Shah said "some people have a crooked vision. They can't see anything straight," after being asked about Gandhi's demands that the government transfer Rs 7,500 directly into the accounts of the migrant workers for the next six months.

The former Congress chief had consulted renowned economists - former RBI Governor Raghuram Rajan and Nobel Laureate Abhijit Banerjee – and has demanded the cash transfer for families of migrant workers hit by the lockdowns.