US President Donald Trump Recently called India’s economy a dead economy. Now he has got a strong reply from the global rating agency S&P. S&P Global Ratings on Thursday increased India’s credibility to ‘BBB’. The rating has been increased citing strong economic growth with better monetary policy measures that curb inflation. S&P is the first global rating agency to increase India’s rating from the lowest investment level ‘BBB-‘. S&P said in a statement, “India is giving priority to fiscal strength. This reflects the government’s political commitment to provide permanent public finance, maintaining a campaign to prepare a strong infrastructure.
American rating agency is S&P
According to the statement, S&P Global Ratings has increased India’s long-term ‘Sovereign’ credibility from ‘BBB-‘ to ‘BBB’ and short-term rating from ‘A-3’ to ‘A-2’. The US agency said in a statement that the landscape of long -term ratings is stable. S&P said, “We believe that the US fee on the Indian economy will be affected by management. India is relatively less dependent on trade and about 60 percent of its economic growth comes from domestic consumption. “Although the US is the largest trading partner in India, but there is no possibility of any major impact on the increase in 50 percent fee (if imposed).
Rating improves after 19 years
The rating agency has increased India’s rating after 19 years citing better monetary policy measures to control strong economic growth, political commitment to fiscal strength and inflation. S&P Global Ratings said, “India is one of the best performing economies in the world. The quality of government spending has improved in the last five-six years. ”S&P said that the US fee on the Indian economy will be impacted in the purview of management. If 50 percent fee is imposed on India, then there is no possibility of any major impact on the increase. The agency said, “India is relatively less dependent on trade and about 60 percent of its economic growth comes from domestic consumption.” This improvement in the ratings of the US agency has come a few days after US President Donald Trump called India a ‘dead economy’.
Trump imposed 50 percent tariff
Trump has announced the highest 50 percent fee on Indian goods since August 27. Improvement in credit will reduce the cost of debt for Indian companies in international markets. S&P gave India the lowest investment level rating ‘BBB-‘ in January 2007. This is the first improvement in credibility by a global rating agency with a rating of India a rank above the lowest investment level. ‘BBB’ is a rating of investment level and it explains the country’s better ability to easily repay its debt obligations. In May last year, S&P changed India’s credit rating scenario from ‘stable’ to ‘positive’. Also indicated that ratings could improve in the next 24 months.
Great performance after Corona
S&P said, “India’s recovering from the lower level of epidemic makes it one of the world’s best performing market economies.” Economic expansion is moving towards more durable level with good speed and this condition is becoming normal. We estimate that the strengthening of consumer and public investment will bring the growth rate of real GDP growth to 6.5 percent and an average in the next three years in the next three years.
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