New Delhi, Jun 10 (PTI) S&P on Wednesday retained India”s sovereign rating at ”BBB-” with a stable outlook, saying that while risks to growth are rising, the economy and fiscal position will stabilise and begin to recover from 2021 onwards.
“While risks to India”s long-term growth rate are rising, ongoing economic reforms, if executed well, should keep the country”s growth rate ahead of peers,” S&P said in a statement.
S&P has forecast India”s economy to shrink by 5 per cent this fiscal. “The stable outlook reflects our expectation that India”s economy will recover following the containment of COVID-19 pandemic and the country will maintain its sound net external position,” S&P said while affirming India”s rating at ”BBB-” and maintaining a stable outlook.
The stable outlook also assumes that the government”s fiscal deficit will recede markedly following a multi-year high in fiscal year 2021, it added. PTI JD MKJ