FM Nirmala Sitharaman holds virtual meeting with IT body NASSCOM

Finance Minister Nirmala Sitharaman on Thursday held a virtual meeting with senior officers of IT industry body NASSCOM.

In a tweet, NASSCOM President Debjani Ghosh said, Thank you Respected FM @nsitharaman ji for a very productive discussion with @Nasscom leaders. The tech industry is determined to ensure we emerge stronger from the crisis and we thank you for your willingness to engage and support. #ThinkDigitalThinkIndia .

Nirmala Sithraman

Nirmala Sitharaman

The coronavirus outbreak has hit the information technology industry, which has overseas clientele apart from domestic operations. Global uncertainty, slowdown, and recessionary fears, will have its implications on investments.

“Smt @nsitharaman holds a meeting with the senior officers of NASSCOM through video conference,” the Office of Nirmala Sitharaman said.

The economic disruption caused by COVID-19 pandemic has led to global rating agencies predicting India’s growth to contract in current fiscal. While S&P and Fitch expects GDP to shrink by five percent, Moody’s said it would be (-)four percent.

Recently, Moody’s Investors Service downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there will be challenges in the implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.

“Moody’s has also downgraded India’s local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2. The outlook remains negative,” the agency said in a statement.

The negative outlook reflects dominant, mutually-reinforcing, downside risks from deeper stresses in the economy and financial system, that could lead to more severe and prolonged erosion in fiscal strength than Moody’s currently projects, it added.

‘Baa3’ is the lowest investment grade — just a notch above junk status.

The rating downgrade brings Moody’s sovereign rating on India on par with S&P and Fitch, which rate India at ‘BBB-‘, the lowest investment grade.

(Disclaimer: Additional background information has been added to this PTI copy for context)

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