Press Esc to close
Monday 02 March 2015
News updated at 10:32 AM IST
Weather
Max: 31.7°C
Min : 16.9°C
In Bengaluru
clear sky

India faces one-in-three chance of rating downgrade, says S and P

Mumbai, Dec 11, 2012, PTI:

India faces one-in-three chance of rating downgrade in the next two years, in case the government fails to push reforms in view of the political gridlock and ensuing general election in 2014, Standard & Poor’s said on Tuesday.

The problems being faced by the economy include soaring fiscal deficit and high inflation, S&P said while retaining India’s rating at ‘BBB-’, lowest in the investment grade. Any further downgrade will push India’s rating to the junk status, making it difficult and costlier for Indian entities to borrow funds overseas. High fiscal deficit and a heavy debt burden would remain the most significant rating constraints, it said. Things could improve with government initiatives to reduce deficit and improve investment climate. “With the next elections to be held by May 2014 — and the current political gridlock, we expect only modest progress in fiscal and public sector reforms.”

“Such reforms include reducing fuel and fertiliser subsidies, introducing a nationwide goods and services tax, and easing of restrictions on foreign ownership in various sectors such as banking, insurance, and retail,” S&P said.


Go to Top

Photo Gallery
Cambodian artists presenting dance-drama at the International Ramayana Mela...

Cambodian artists presenting dance-drama at the International Ramayana Mela...

Cyclist at the Rajpath as the national capital received early morning showers in New Delhi...

Cyclist at the Rajpath as the national capital received early morning showers in New Delhi...

A waterlogged street after the early morning showers in the national capital...

A waterlogged street after the early morning showers in the national capital...

A train moves through snow covered railway track as the region received heavy snowfall in Anantnag..

A train moves through snow covered railway track as the region received heavy snowfall in Anantnag..

Artists dressed up as Hindu deities Lord Krishna and Radha play Holi...

Artists dressed up as Hindu deities Lord Krishna and Radha play Holi...

People throw coloured powder as they celebrate Lathmar Holi at Nandgaon...

People throw coloured powder as they celebrate Lathmar Holi at Nandgaon...

Prime Minister Narendra Modi with the new Chief Minister of Jammu and Kashmir Mufti Mohammad Syeed..

Prime Minister Narendra Modi with the new Chief Minister of Jammu and Kashmir Mufti Mohammad Syeed..

Sangakkara and Thirimanne celebrate beating England in their Cricket World Cup match...

Sangakkara and Thirimanne celebrate beating England in their Cricket World Cup match...

Sangakkara congratulates team mate Perera who celebrates talking the wicket of England's Morgan...

Sangakkara congratulates team mate Perera who celebrates talking the wicket of England's Morgan...

Pakistan players celebrate with wicket of Zimbabwe's Chamunorwa Chibhabha during ...

Pakistan players celebrate with wicket of Zimbabwe's Chamunorwa Chibhabha during ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523