India’s credit rating upheld by S&P
Noting that investment has been declining for fourteen years in a row, the ‘BBB deficit’ status, the rapid recovery of the economy
Advice on financial reform
New Delhi: The global credit rating agency S&P has not changed India’s credit rating today, but has maintained its “BBBU” status for 14 consecutive years. The government will have to make additional economic reforms to revive the economy in the current financial year. This will increase investment and help create new jobs and help the economy recover, the credit rating agency said in its report.
S&P has projected India’s GDP growth at 9.5 per cent for the current fiscal, which began in April. It is also forecast to be 7.8 per cent in the following year.
GDP growth is projected to slow to ६ 2.66 trillion from ८ 2.87 trillion in 2019-20 and २० 3.96 trillion in 2024-25.
S&P has kept India’s credit rating stable, saying the rapid recovery in India’s economy will take place in the second half of 2021-22.
Prime Minister Narendra Modi had announced to boost India’s economy to US ५ 5 trillion in 2019. It also announced that India would become a global powerhouse in 2024-25.
Given all these circumstances, the government will now have to use its capacity and implement additional reforms. Especially economic reforms that will increase investment in the country and create new jobs. Doing so will help India’s economy recover.