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 sovereign credit rating.
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 sustain elevated Government funding needs and a high interest burden over the next 24 months," analysts wrote in a release.
S&P expects India's economy to grow by about 6% in 2023/24, with investments and consumer momentum helping growth prospects over the next few years.
Although India's public finances remain weak, strong growth in capital expenditure (capex) allocations boosts the quality of the government's fiscal programs, S&P said.
