- S&P today affirmed India’s ratings at ‘BBB-/A-3’
- It believes India is experiencing a cyclical, rather than a structural, economic slowdown
Global rating agency S&P today affirmed India’s sovereign ratings at ‘BBB-/A-3’ with stable outlook, saying that it expects GDP growth to recover towards the longer term trend rates over two-three years. It also said that India is experiencing a cyclical, rather than a structural, economic slowdown.
The ratings on India reflect the country’s above-average real GDP growth, sound external profile, and evolving monetary settings, S&P said adding that India’s strong democratic institutions promote policy stability and compromise, and also underpin the ratings.
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The Reserve Bank of India last week projected the economy to expand by 6% during the next financial year, pegging it at the lower end of the GDP growth estimate of the Economic Survey. The survey, tabled in Parliament last month, estimated the GDP growth during FY21 at 6-6.5%. The government has taken a host of steps to spur economic growth, which is estimated to have slow to a 5% in the current fiscal.