S&P Global Ratings on Wednesday said India will be one of the fastest growing emerging-market economies with a 10% growth in the next fiscal, and future sovereign rating action would hinge on lowering fiscal deficit and sustaining debt burden.
S&P director, sovereign & international public finance ratings, Andrew Wood, said the forecast for India in 2021 is on stronger side and shows that a lot of economic activity, which was frozen last year, is coming back on line to normalisation, thereby brightening the growth prospects.
Bounce back
“India will be one of the fastest-growing economy in the EM (emerging market) space. India’s contraction this year was steep and may be deeper than global average, but a bounce back of 10% that we are expecting next fiscal year will be putting India amongst the fastest growers in 2021 and more importantly, we see Indian economy growing at 6% over medium term, may be slightly higher, and that compares very well to EMs all around the world,” Mr. Wood said in a webinar.
S&P said India’s economy has stabilised over recent months, with progressively better manufacturing, services, labour-market and revenue data. The hard part will be converting the trends into a sustained recovery over the next few years.
