'They are behind the curve...': Sanjeev Sanyal says India better placed than what S&P's making out to be
On Wednesday, S&P Global Ratings revised its outlook on India’s economy to 'positive' from 'stable', citing robust growth and improved quality of government spending.
- May 30, 2024,
- Updated May 30, 2024 7:47 AM IST
India's sovereign credit rating should be two notches higher than present level, given its strong economic performance, PM’s Economic Advisory Council member Sanjeev Sanyal said on S&P Global's upgrade of India's rating outlook.
On Wednesday, S&P Global Ratings revised its outlook on India’s economy to 'positive' from 'stable', citing robust growth and improved quality of government spending. However, the sovereign rating remained at 'BBB Minus'.
Sanyal welcomed the revision, but said "they are behind the curve". India is much better positioned than what S&P is making out to be, he told NDTV Profit.
"By any objective criteria, India should actually be rated one, if not two, notches above where it is right now," the member of the Economic Advisory Council to the Prime Minister said.
S&P Global Ratings indicated that the positive outlook suggests a potential rating upgrade within the next two years.
"The positive outlook reflects our view that continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects. That, along with cautious fiscal and monetary policy that diminishes the government’s elevated debt and interest burden while bolstering economic resilience, could lead to a higher rating over the next 24 months," the agency stated.
The 'BBB Minus' rating has been in place since January 30, 2007, when it was upgraded from 'BB+'. It has maintained a 'stable' outlook since September 26, 2014, despite a negative outlook between April 25, 2012, and September 2014.
Earlier this year, Fitch also affirmed India’s sovereign rating at 'BBB Minus' with a stable outlook, based on strong medium-term GDP growth prospects and sound external finances. 'BBB Minus' is the lowest investment grade rating.
India's sovereign credit rating should be two notches higher than present level, given its strong economic performance, PM’s Economic Advisory Council member Sanjeev Sanyal said on S&P Global's upgrade of India's rating outlook.
On Wednesday, S&P Global Ratings revised its outlook on India’s economy to 'positive' from 'stable', citing robust growth and improved quality of government spending. However, the sovereign rating remained at 'BBB Minus'.
Sanyal welcomed the revision, but said "they are behind the curve". India is much better positioned than what S&P is making out to be, he told NDTV Profit.
"By any objective criteria, India should actually be rated one, if not two, notches above where it is right now," the member of the Economic Advisory Council to the Prime Minister said.
S&P Global Ratings indicated that the positive outlook suggests a potential rating upgrade within the next two years.
"The positive outlook reflects our view that continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects. That, along with cautious fiscal and monetary policy that diminishes the government’s elevated debt and interest burden while bolstering economic resilience, could lead to a higher rating over the next 24 months," the agency stated.
The 'BBB Minus' rating has been in place since January 30, 2007, when it was upgraded from 'BB+'. It has maintained a 'stable' outlook since September 26, 2014, despite a negative outlook between April 25, 2012, and September 2014.
Earlier this year, Fitch also affirmed India’s sovereign rating at 'BBB Minus' with a stable outlook, based on strong medium-term GDP growth prospects and sound external finances. 'BBB Minus' is the lowest investment grade rating.