S&P Global Ratings Revised India’s Outlook On Economy To Positive From Stable

S&P Global ratings has revised India’s outlook on economy to positive from stable. The agency expects broad continuity in economic reforms and fiscal policies regardless of the election outcome.

Since September 26 2014, the Agency placed India’s outlook on Economy as stable. After a gap of 10 years, the outlook has been upgraded to positive.

 

In a statement, S&P Global Ratings said that, “The positive outlook reflects our view that continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects. That, along with cautious fiscal and monetary policy that diminishes the government’s elevated



debt and interest burden while bolstering economic resilience, could lead to a higher rating over the next 24 months.”

 

Robust economic growth, pronounced improvement in the quality of government spending, political commitment to fiscal consolidation, GDP expanding close to 7% annually over the next three years, Improvements in infrastructure and connectivity in India, Expectation on general government deficit to dip to 6.8% by fiscal 28 from 7.9% in fiscal 2025, are the rational behind the positive outlook.

 

The agency, however, retained the Sovereign rating at BBB minus, citing Fiscal setting vulnerabilities.