Ten yrs on, S&P outlook for India turns 'positive'
India's sovereign outlook after 10 years to 'positive,' citing improved quality of public spending and expectation of broad continuity in reforms and fiscal policies. India's rating remains unchanged at BBB-. The agency said the country's rating could be upgraded in the next 24 months if it adopts a cautious fiscal and monetary policy that reduces the government's elevated debt and interest burden while bolstering economic resilience.
«It's a welcome development,» finance minister Nirmala Sitharaman posted on X, «It has been possible due to the series of macroeconomic reforms undertaken since 2014, along with substantial outlay for capex, fiscal discipline, and decisive & visionary leadership.»
Expressing enduring confidence in the economy, economic affairs secretary Ajay Seth told ET, «I am glad S&P, in its own assessment, has realised the strength of India's economy and upgraded outlook… The team led by the chief economic adviser could convince them (S&P) to reach (this) assessment.»
Robust Fundamentals
«Our positive outlook on India is predicated on its robust economic growth, pronounced improvement in the quality of government spending and political commitment to fiscal consolidation. We believe these factors are coalescing to benefit credit metrics,» S&P said.
In 2014, the agency upped the nation's outlook to 'stable,' from 'negative'.
FM Sitharaman said S&P's upgrade to positive reflects India's solid growth performance and a promising economic outlook for the coming years. She added that India was on
