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Journalism of Courage
Rating firm Standard 038; Poor8217;s today said Indian economy is 8216;stable8217; but expressed concern over the high fiscal deficit and pressing development needs. S038;P retained 8216;BB8217; long-term rating for the country with 8216;stable8217; outlook.
The agency affirmed a rating of 8216;B8217; for the short-term.
8216;8216;India8217;s average annual economic growth over the past five years of 6.5 per cent is higher than any other major economy except China8217;s,8217;8217; S038;P credit analyst Ping Chew said in a statement from Singapore today.
8216;8216;Growth has been fuelled by steady economic reforms since 1991. We expect India to maintain or alleviate some of its pressing poverty infrastructure needs,8217;8217; Chew said.
8216;8216;India8217;s ratings balance its strong external position and growth prospects with its weak fiscal profile and pressing develpoment needs,8217;8217; the rating firm said.
However, expressing concern over India8217;s rising fiscal deficit, Chew said: 8220;India has still a pressing fiscal problem and its debt is on a rise.8221; S038;P projected the government deficit to reach 8.7 per cent of GDP for the fiscal 2005-06.
