On the one hand, the entire atmosphere in India is electoral and the results will be known on June 4. On the other hand, good news has arrived for India and the Indo-American agency has given a great gift to the country. S&P Global Ratings has enhanced India’s credibility. The special thing is that the US agency has increased the country’s credibility after 14 years. Which will help in better promoting India’s economy in the world. It will also increase the ability to take loans. Let us also tell you what S&P Global Ratings has said in enhancing India’s credibility.
S&P Global increased its credibility
S&P Global Ratings has upgraded India’s credit rating from stable to positive. This change in India’s rating scenario has been made possible after a gap of 14 years due to strong growth, improved quality of public spending in the last five years and expectations of reforms and broad continuity in fiscal policies. S&P, however, has kept India’s sovereign rating at the lowest investment grade, BBB-. BBB- is the lowest rating in the investment category. The agency last raised the rating scenario from negative to stable in 2010.
There may be a new increase in two years.
The US agency said in a statement on Wednesday that if India adopts a cautious fiscal and monetary policy, which reduces the government’s rising debt and interest burden and increases combativeness on the economic front, then India’s credit rating will improve in the next 24 months. It can increase. S&P’s rating comes a week after the Reserve Bank of India (RBI) transferred a record dividend of Rs 2.10 lakh crore to the government.
This amount can be used to reduce the Centre's fiscal deficit. The rating is a means of measuring the risk level of a country's investment scenario. It also raises investors' awareness of the country's ability to pay its debt. Investors view these ratings as a measure of a country's creditworthiness and have an impact on the cost of borrowing.
More than 8 percent growth in the last three years
The agency estimates that the real GDP growth rate over the past three years has averaged 8.1 percent annually, which is the highest in the Asia-Pacific region. S&P said it could raise the rating if India's fiscal deficit narrows significantly and, as a result, general government debt falls below seven percent of GDP on a structural basis. S&P said the quality of government spending has improved over the past four or five years. Public investment and boosting consumption will lay the foundation for solid growth prospects over the next three or four years.
