S&P calls India's budget 'cautious', says has no impact on ratings

MUMBAI Thu Jul 10, 2014 7:17pm IST

Finance Minister Arun Jaitley (C) poses as he leaves his office to present the budget for the 2014/15 fiscal year, in New Delhi July 10, 2014. REUTERS/Stringer

Finance Minister Arun Jaitley (C) poses as he leaves his office to present the budget for the 2014/15 fiscal year, in New Delhi July 10, 2014.

Credit: Reuters/Stringer

Related Topics

MUMBAI (Reuters) - Standard & Poor's Ratings Services said on Thursday India's budget had adopted a "cautious" approach in tackling some of economy's structural weaknesses and said it would have no bearing on the country's sovereign rating.

"The commitment of the new Indian government to maintaining the trend of fiscal consolidation would benefit the sovereign's credit fundamentals. However, the budget announced today has opted for a cautious approach toward tackling some of the economy's structural weaknesses," S&P said in a statement.

Earlier, Finance Minister Arun Jaitley unveiled a budget that seeks to revive growth and curb borrowing, but left open questions on how it will reduce the fiscal deficit.

S&P added the budget would have "no immediate impact" on India's sovereign rating. The agency is the only of the three major ratings providers to rate India with a "negative" outlook.

S&P said it could lower India's rating to below investment-grade from the current "BBB-minus" rating should the new government prove unable to reverse India's low economic growth.

Alternatively, S&P said it could revise the outlook to stable if the government can restore some of India's "lost growth potential and consolidate its fiscal accounts."

(Reporting by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-China Ties

REUTERS SHOWCASE

Scotland Referendum

Scotland Referendum

Scots vote in record numbers, await independence verdict.  Full Article 

India-US Diplomacy

India-US Diplomacy

Obama to nominate Indian-American Richard Verma as India ambassador - congressional source.  Full Article 

GMR in Nepal

GMR in Nepal

Nepal clears India’s GMR plan for $1.4 bln hydroelectric plant.  Full Article 

LIC on Markets

LIC on Markets

LIC chairman bullish on Indian markets  Full Article 

India Rains

India Rains

Monsoon rains weaken as late retreat looms.  Full Article 

Ellison Quits

Ellison Quits

Oracle's Ellison steps aside, co-CEOs Catz and Hurd take over.  Full Article 

Infosys-Huawei

Infosys-Huawei

Infosys partners with China's Huawei for cloud-based services  Full Article 

Gold Outlook

Gold Outlook

Gold imports seen up, premiums likely to double on festive buying  Full Article 

Trade Dispute

Trade Dispute

U.S. to press India on trade row during Modi's Washington visit  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage