The Standard & Poor's (S&P) has retained India's ratings at the lowest
The Standard & Poor’s (S&P) has retained India’s ratings at the lowest investment grade and outlook as stable, saying the country’s economy remains a long-term outperformer versus peers at a similar level of income. The rating action by S&P has come as a bit of relief to the country after a rating cut by Moody’s by a notch.
S&P, however, said the impact of the outbreak of coronavirus poses a significant challenge to the country’s economic growth trajectory.
It said the economic growth, the fiscal situation of the Centre and states will improve the next year after taking a hit in 2020-21 and expected reforms initiated by the government will bear fruits in the long run.
It projected the economy to contract five per cent in the current financial year, but said it will grow by 8.5 per cent in 2021-22. Similarly, the fiscal deficit of the Centre and states will shoot up to 11 per cent of the country’s gross domestic product (GDP) in…