S&P outlook upgrade to boost investor sentiment: India Inc.
29/09/2014 00:12
India Inc. has given thumbs up to leading global rating agency Standard & Poor’s (S&P) decision to upgrade the country’s sovereign rating outlook from negative to stable, and has expressed optimism that the decision may help woo more foreign investment in Asia’s third biggest economy which last quarter grew at the sharpest clip in more than two years. S&P on Friday upgraded its long-term outlook on India’s ‘BBB-/A-3’soveriegn credit rating from negative to stable, removing the risk of a downgrade of India’s rating to junk status as the current account deficit improved amid gold import curbs while a stable and reform oriented government has the ability to push the country into a higher growth trajectory. “What global rating agency Standard & Poor's (S&P) has recognised today has already been acknowledged by global investors who have been pouring money into the Indian debt and stock markets for the last several months," Assocham president Rana Kapoor said. "In fact, our markets have been the best performing. In a way, the rating agencies seem to be behind the curve when it comes to reposing faith in the Indian economy," he added. Prime Minister Narendra Modi has stepped up the reform process by liberilising FDI norms in sectors such as defence and railways while his ambitious ‘Make in India’ campaign seeks to make India a global manufacturing hub. Modi is leaving no stone unturned to push foreign investment in India, a key to sustaining long-term economic growth. Modi’s ability to push structural reforms may boost economic growth and better the country’s fiscal performance, S&P reckons.
29/09/2014 00:12
India Inc. has given thumbs up to leading global rating agency Standard & Poor’s (S&P) decision to upgrade the country’s sovereign rating outlook from negative to stable, and has expressed optimism that the decision may help woo more foreign investment in Asia’s third biggest economy which last quarter grew at the sharpest clip in more than two years. S&P on Friday upgraded its long-term outlook on India’s ‘BBB-/A-3’soveriegn credit rating from negative to stable, removing the risk of a downgrade of India’s rating to junk status as the current account deficit improved amid gold import curbs while a stable and reform oriented government has the ability to push the country into a higher growth trajectory. “What global rating agency Standard & Poor's (S&P) has recognised today has already been acknowledged by global investors who have been pouring money into the Indian debt and stock markets for the last several months," Assocham president Rana Kapoor said. "In fact, our markets have been the best performing. In a way, the rating agencies seem to be behind the curve when it comes to reposing faith in the Indian economy," he added. Prime Minister Narendra Modi has stepped up the reform process by liberilising FDI norms in sectors such as defence and railways while his ambitious ‘Make in India’ campaign seeks to make India a global manufacturing hub. Modi is leaving no stone unturned to push foreign investment in India, a key to sustaining long-term economic growth. Modi’s ability to push structural reforms may boost economic growth and better the country’s fiscal performance, S&P reckons.
