06-01-2004, 08:54 PM
<b>Reforms to be key to India's rating</b>
Pioneer News Service/ New Delhi
Putting the onus on the new government at the centre, international rating agency Standard & Poor's has said that India's rating can improve if the new government reduces fiscal deficit and continues reforms to maintain a high economic growth.
"A better fiscal performance, along with structural reform to maintain country's growth prospects and its strong external profile could lead to an improved foreign currency rating," S&P director Ping Chew said in a statement.
The government's ability to improve the fiscal situation and deepen structural reforms will be key factors for the foreign currency now at "BB" with stable outlook and local currency rating of "BB+" with a negative outlook, he said.
S&P, which pegged India's GDP growth at 6.0 per cent for this year compared to 8.0 per cent last year, also said the budget for 2004-05 will be a "litmus test" for Congress-led United Progressive Alliance (UPA) government.
Pioneer News Service/ New Delhi
Putting the onus on the new government at the centre, international rating agency Standard & Poor's has said that India's rating can improve if the new government reduces fiscal deficit and continues reforms to maintain a high economic growth.
"A better fiscal performance, along with structural reform to maintain country's growth prospects and its strong external profile could lead to an improved foreign currency rating," S&P director Ping Chew said in a statement.
The government's ability to improve the fiscal situation and deepen structural reforms will be key factors for the foreign currency now at "BB" with stable outlook and local currency rating of "BB+" with a negative outlook, he said.
S&P, which pegged India's GDP growth at 6.0 per cent for this year compared to 8.0 per cent last year, also said the budget for 2004-05 will be a "litmus test" for Congress-led United Progressive Alliance (UPA) government.