*NEW DELHI: **India’s economy faces a big setback as the *Moody’sInvestors Service on Thursday cut India’s ratings outlook to “negative”from “stable”.
The rating has been downgraded citing increasing risks that growth inAsia’s third-largest economy will remain lower than in the past.
The ratings agency said its action partly reflected government and policyineffectiveness in addressing economic weakness, which in turn led to anincrease in debt burden from already high levels, Reuters has reported.
Moody’s retained its foreign and local currency ratings at ‘Baa2’.
Read Top Stories
The Nifty 50 index fell 0.4% in early trade on Friday, while the rupeeweakened to 71.31 against the dollar, versus Thursday’s close of 70.965.
