India’s fiscal health remains vulnerable spot: Standard & Poor’s

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Mumbai | Updated: April 13, 2015 3:14:46 PM

India's fiscal weakness remains a vulnerable spot in its sovereign credit profile, ratings agency Standard & Poor's said...

india, fiscal policy, fical deficit, india's fiscal health, standard & poor's, indian economy, economic growth rate, indian economy growth rate, india's fiscal deficit, india's fiscal policy, india's fiscal fortune, standard and poor rating, standard and poor india, standard and poor rating india, business news, india newsS&P said the government’s efforts to rein-in spending indicated the high priority of fiscal prudence, but warned that spending on subsidies and heavy government debt remained concerns. AP

India’s fiscal weakness remains a vulnerable spot in its sovereign credit profile, ratings agency Standard & Poor’s said on Monday, warning that a financial or a commodity “shock” may unwind fiscal improvements.

S&P said the government’s efforts to rein-in spending indicated the high priority of fiscal prudence, but warned that spending on subsidies and heavy government debt remained concerns.

“Structural fiscal weaknesses continue to be vulnerabilities of Indian sovereign creditworthiness,” S&P credit analyst Kim Eng Tan said, reaffirming India’s BBB- sovereign credit rating with a “stable” outlook.

“Although India’s budgetary performances have strengthened in recent years, its hard-won fiscal improvements could yet unwind because of a financial or commodity shock,” Tan added.

Last week, Moody’s raised India’s outlook to “positive”, which brought it a step closer to an upgrade of the credit rating.

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