S&P reaffirms India’s ratings

New Delhi: Sensing the country’s economic growth to gradually recover over the next two to three years, global ratings agency Standard and Poor’s, on Thursday, affirmed India’s sovereign rating at ‘BBB-‘ with stable outlook. It further said that the gross domestic product or GDP rate is expected to improve to 6 per cent during 202021, 7 per cent in the next fiscal and 7.4 per cent thereafter.

Anticipating the country's economic growth to gradually recover over the next two to three years, global ratings agency Standard and Poor's, on Thursday, affirmed India's sovereign rating at 'BBB-' with stable outlook. It further said the gross domestic product, or GDP, growth is expected to improve to

6 per cent during 2020-21,

7 per cent in the next fiscal and 7.4 per cent thereafter.

"Despite a notable deceleration in India's economy in recent quarters, we believe its structural growth outperformance remains intact. Real GDP growth is therefore likely to gradually recover toward longer-term trend rates over the next two to three years," S&P said in a statement.

"We expect India's economy to continue to outperform peers at a similar level of income, despite a recent slowdown in real GDP growth. Supportive monetary, fiscal, and cyclical factors should support economic recovery, with real GDP growth averaging 7.1 per cent in fiscals

2020-2024," it said. Pointing out that India's fiscal position remains precarious, with elevated fiscal deficits and net government indebtedness, the agency, said, "Fiscal deficits have exceeded the government's plan and there may be some limited consolidation over the next few years."