New Delhi: S&P Global Ratings on Tuesday reaffirmed India’s sovereign rating Minimum investment grade ‘BBB-‘ for the 14th year in a row with a stable outlook, and said the country’s strong external settings will act as a buffer against financial stress in the next 24 months despite higher government funding needs.
S&P Global Ratings said the sovereign credit rating on India reflects the economy’s above-average long-term real GDP growth, sound external profile and developed monetary settings.
“India’s democratic institutions promote policy stability and compromise, and also lower ratings. These strengths are balanced against vulnerabilities resulting from the country’s low per capita income and weak fiscal settings, which include persistent general government deficits and indebtedness. is,” it said in a statement. .
S&P Global Ratings has estimated that economic activity in India will begin to normalize during the rest of FY 2022, resulting in real GDP growth of around 9.5 per cent.
A significant proportion of this rebound will be due to a very weak base in the last financial year, when the economy shrank by a record 7.3 per cent.
India’s fiscal system is weak, and the deficit will remain high for years to come, even if the government does some consolidation.
The country’s strong external settings help buffer risks associated with the government’s high deficit and debt stock, with the S&P reaffirming its ‘BBB-‘ long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign ratings on India. said.
“The stable outlook reflects our expectation that India’s economy will recover after the resolution of the COVID-19 pandemic, and that the country’s strong external settings will serve as a buffer against financial stress despite higher government funding needs over the next 24 months.” will act as such,” it added.
The sovereign credit rating on India reflects the economy’s above-average long-term real GDP growth, sound external profile and developed monetary settings.
India’s democratic institutions promote policy stability and compromise, and also lower ratings. These strengths are balanced against vulnerabilities resulting from the country’s low per capita income and weak fiscal settings, which include persistently modest government deficits and indebtedness.
S&P Global Ratings said the sovereign credit rating on India reflects the economy’s above-average long-term real GDP growth, sound external profile and developed monetary settings.
“India’s democratic institutions promote policy stability and compromise, and also lower ratings. These strengths are balanced against vulnerabilities resulting from the country’s low per capita income and weak fiscal settings, which include persistent general government deficits and indebtedness. is,” it said in a statement. .
S&P Global Ratings has estimated that economic activity in India will begin to normalize during the rest of FY 2022, resulting in real GDP growth of around 9.5 per cent.
A significant proportion of this rebound will be due to a very weak base in the last financial year, when the economy shrank by a record 7.3 per cent.
India’s fiscal system is weak, and the deficit will remain high for years to come, even if the government does some consolidation.
The country’s strong external settings help buffer risks associated with the government’s high deficit and debt stock, with the S&P reaffirming its ‘BBB-‘ long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign ratings on India. said.
“The stable outlook reflects our expectation that India’s economy will recover after the resolution of the COVID-19 pandemic, and that the country’s strong external settings will serve as a buffer against financial stress despite higher government funding needs over the next 24 months.” will act as such,” it added.
The sovereign credit rating on India reflects the economy’s above-average long-term real GDP growth, sound external profile and developed monetary settings.
India’s democratic institutions promote policy stability and compromise, and also lower ratings. These strengths are balanced against vulnerabilities resulting from the country’s low per capita income and weak fiscal settings, which include persistently modest government deficits and indebtedness.
.