Live Breaking News & Updates on Indias Sovereign Rating
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Christian de Guzman of Moody s Investors Service states that India s fiscal consolidation has progressed since the pandemic, but it has not yet reached the level prior to the downgrade to BAA3. The bond markets are responding positively to the government s efforts, with lower borrowings and increased capital inflows expected. For a ratings upgrade, India s weak points, such as fiscal consolidation and debt reduction, need to show material improvement. India is not alone in the region in terms of gradual fiscal consolidation post-pandemic. ....
Fitch expects India s sovereign rating to remain unchanged despite the government s efforts for fiscal consolidation. The general government debt is projected to stay above 80% of GDP over the next five years, with a deficit reduction target of 4.5% by FY26. Fitch s forecast indicates a deficit ratio of 5.1% in FY25, and GDP growth of 6.5%. The government s focus on capex investment is expected to support the growth outlook in FY25, with a planned expenditure of Rs 11.11 lakh crore, representing a 16.9% increase from FY24 s revised estimates. ....
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