While maintaining status quo on India’s sovereign credit rating at BBB- and outlook ‘stable’, S&P said that fiscal deficit will remain in line with their expectations and the economic growth of the country is set to grow robustly over the next two years. The rating agency even indicated at an upgrade in future if reforms by Narendra Modi government markedly improve fiscal conditions.
S&P said that stable outlook reflects that India will maintain sound external account position, while sizeable fiscal deficit, high government debt, low per capita income detracted from sovereign credit profile. Moody’s upgraded India’s sovereign rating to Baa2 from Baa3 last week, after a long gap of 14 years. “Despite two-quarters of weaker-than-expected growth, India’s economy is forecast to grow robustly in 2018-2020 and foreign exchange reserves will continue to rise,” S&P said, adding that there could be a downward pressure on the ratings if GDP growth disappoints.

While maintaining status quo on India’s sovereign credit rating at BBB- and outlook ‘stable’, S&P said that fiscal deficit will remain in line with their expectations and the economic growth of the country is set to grow robustly over the next two years. The rating agency even indicated at an upgrade in future if reforms by Narendra Modi government markedly improve fiscal conditions.
S&P said that stable outlook reflects that India will maintain sound external account position, while sizeable fiscal deficit, high government debt, low per capita income detracted from sovereign credit profile. Moody’s upgraded India’s sovereign rating to Baa2 from Baa3 last week, after a long gap of 14 years. “Despite two-quarters of weaker-than-expected growth, India’s economy is forecast to grow robustly in 2018-2020 and foreign exchange reserves will continue to rise,” S&P said, adding that there could be a downward pressure on the ratings if GDP growth disappoints.