The PM Narendra Modi government on Monday approached rating firm Standard & Poor’s (S&P) for an upgrade...
The PM Narendra Modi government on Monday approached rating firm Standard & Poor’s (S&P) for a rating upgrade, which is crucial for the country as it will go a long way in improving how the Indian economy is viewed by foreign investors and help get rid of a host of negative perceptions. S&P has assigned India a sovereign rating of ‘BBB-’ (investment grade) with stable outlook and has not, so far, indicated a willingness to change that, unless the govt implements reforms, which are increasingly looking impossible. The government, on its part, says situation is not really grim. In this situation, here are 5 reasons being trotting out to make Standard & Poor’s see things the Modi govt’s way:
1. Improved macroeconomic indicators such as low inflation
2. Fiscal deficit and current account deficit (CAD) under control
3 Low oil prices are helping in improving external situation
4. With restoration of macrostability, room created for monetary easing
5. Cumulative effect of reforms and better monsoon set to boost economic growth to 8% in FY16