S&P says India's fiscal, econ reforms to determine credit rating
MUMBAI (Reuters) - The fiscal and economic reforms taken by India's new government in the next two to three months will have "significant implications" on India's sovereign credit rating, Standard & Poor's Ratings Services said on Friday.
S&P added the next government would need to regain "fiscal prudence in a sustainable way," such as by implementing a goods and services tax to help stabilise government revenues.
"What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy," S&P credit analyst Takahira Ogawa was quoted as saying in the statement.
"If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election."
The S&P statement came after the Bharatiya Janata Party and its allies were headed for the biggest victory the country has seen in 30 years.
S&P is the only of the three major credit agencies to have India with a "negative outlook" for its "BBB-minus" rating, meaning any downgrade would send the country to below investment grade.
(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)
- Tweet this
- Share this
- Digg this
Indian drugmakers are fleeing a regulatory morass at home and moving some research and development to Europe and the United States as try to boost margins by producing high-value drugs. India's $15 billion a year pharma industry is already reeling from a string of drug recalls and quality control issues which have called into question the regulator's oversight. Full Article
Adani buys Australia coal mine royalty rights from Linc for $145 million Full Article