S&P retains India credit rating; expects sound fundamentals to underpin growth

NEW DELHI: The Indian economy is performing well amid challenging global conditions and sound fundamentals will underpin its growth over the next two to three years, S&P Global Ratings said recently, retaining the country's sovereigncreditrating.

S&P affirmed its 'BBB-' long-term and 'A-3' short-term, unsolicited foreign and local currency sovereign credit ratings, while retaining the outlook on the long-term rating at stable.

"The stable rating outlook reflects our expectation that India's sound economic fundamentals will be sufficient to offset the government's weak fiscal performance, helping to sustainelevatedGovernmentfunding needsandahighinterestburdenover thenext24months,"analystswrotein arelease.

S&P expects India's economy to grow by about 6% in 2023/24, with investments and consumer momentumhelpinggrowthprospects overthenextfewyears.

Although India's public finances remainweak,stronggrowthincapital expenditure (capex) allocations booststhequalityofthegovernment's fiscalprograms,S&Psaid.