New Delhi, May 29 (IANS) Global rating agency S&P Global on Wednesday revised India’s outlook from stable to positive on Wednesday, as the country continues to excel in long-term economic growth amid political stability.
S&P Global 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,” the rating agency said in a statement.
S&P Global expects cautious fiscal and monetary policies to reduce the government’s debt and interest burden, thereby strengthening economic resilience.
This could result in a higher rating within the next 24 months.
“We may also raise the ratings if there is a sustained and substantial improvement in the central bank’s monetary policy effectiveness and credibility, such that inflation is managed at a durably lower rate over time,” S&P Global noted.
However, S&P Global said it could revert the outlook to ‘stable’ if political commitment to sustainable public finances weakens.
The ratings agency also affirmed ‘BBB-‘ long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign credit ratings.
“We expect sound economic fundamentals to underpin the growth momentum over the next two to three years,” the ratings firm said.
–IANS
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