Spurring higher sustainable growth is key for new govt - Fitch

MUMBAI Fri May 16, 2014 3:13pm IST

An Indian labourer works at a new parliament building being constructed by an Indian project in Kabul November 26, 2013.  REUTERS/Mohammad Ismail/Files

An Indian labourer works at a new parliament building being constructed by an Indian project in Kabul November 26, 2013.

Credit: Reuters/Mohammad Ismail/Files

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MUMBAI (Reuters) - The new government must focus on boosting growth, by spurring a pick-up in investments, Fitch Ratings said on Friday, calling this the most important issue from a sovereign credit perspective.

"The most salient issue for the new government from a sovereign credit perspective seems to get growth back to higher sustainable levels, which would require a strong pick up in investments," Thomas Rookmaaker, director in the sovereign ratings group at Fitch wrote in an emailed statement.

Fitch added the investment climate can be strengthened by measures including "a clear strategy" for fiscal consolidation, creating a low inflation environment and a new push towards structural reforms, including reducing red tape and easing infrastructure bottlenecks.

(Reporting by Swati Bhat; Editing by Rafael Nam)

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