After S&P announce its negative view on India FITCH also announce negative outlook for India . The important reason are as follows. Our Rating is BBB- ( the lowest level in Investment grade)
1. Governance & policy making is not improving in India
2. Lack of focus on Fiscal consolidation/ improvement . Not likely to keep the fiscal deficit at 5.1% of GDP
3. Debt of Indian Government is 66% of GDP ( whereas average debt of BBB- rated Countries are 39%)
4. March Quarter GDP growth (5.3%) was lowest in 9 years but still RBI did not reduce interest rate
5. Reporting of increasing corrouption
1. Governance & policy making is not improving in India
2. Lack of focus on Fiscal consolidation/ improvement . Not likely to keep the fiscal deficit at 5.1% of GDP
3. Debt of Indian Government is 66% of GDP ( whereas average debt of BBB- rated Countries are 39%)
4. March Quarter GDP growth (5.3%) was lowest in 9 years but still RBI did not reduce interest rate
5. Reporting of increasing corrouption
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