Team Blitz India
NEW DELHI: Rating firm S&P Global on May 29 revised outlookfor the Indian economyto positive from ‘stable’ and has affirmed the overall rating at BBB-. “India’s fiscal deficit elevated, but consolidation efforts are on. We expect India’s fundamentals to aid growth momentum in 2-3 years,” the firm added.
The agency said that it may upgrade India’s rating if the fiscal gap narrows meaningfully. The Indian Government expects to bring down the fiscal deficit to 5.1 per cent of GDP in FY25, down from 5.8 per cent in FY24. As per the fiscal consolidators roadmap, the deficit would be brought down to 4.5 per cent by 2025-26.Fiscal deficit is the difference between government expenditure and revenue.
“The government’s infrastructure spend will aid India’s growth trajectory. We expect a continuity in India reforms regardless of poll outcome,” S&P said.
