The S&P global qualification qualification agency pointed out the long -term sovereign note of India, which justifies this decision for the “commitment of New Delhi in favor of budget sanitation” and its “dynamic economic growth.”
The agency said in a press release pointed out the qualification of the fifth world economy of “BBB-” A “BBB”, adding that the impact of customs duties taken by the president of the United States, Donald Trump against India, should be “manageable.” S&P pointed out that the possibility of a long -term rating was “stable.”
“The ascending review of India’s qualification reflects its dynamic economic growth, in a context to improve monetary policy,” said the statement. The agency also underlines “the government’s commitment to budgetary sanitation” and a better adjustment of expenses.
Budget sanitation
If India remains the great economy of the world that is experiencing the fastest growth, the rhythm of this growth has slowed last year, partly due to a deceleration in demand and moderation of public spending.
New Delhi’s economic prospects have also obscured in recent weeks due to Trump’s decision to sanction their purchases of Russian oil by threatening to increase customs tasks by 25% to 50%.
But S&P believes that India’s growth prospects will not be compromised by this commercial war, emphasizing that even 50% of customs tasks would not significantly slow down growth. “
“India depends relatively less on foreign trade and about 60% of its economic growth comes from internal consumption,” said the agency’s press release.
And even if India stops importing Russian oil, the budget cost would be “modest” given the “low price difference between the Russian references of crude oil and international current,” adds sp.
Source: BFM TV
