CareEdge Global Ratings believes India’s recent trade deals with the United States and the European Union (EU) along with the fiscal policy path outlined in the budget for fiscal 2026-27 (FY27) uphold the country’s BBB+/stable credit profile.

These developments could enhance the diversification and scale of India’s exports and support medium-term growth prospects, it noted in a release.

At the same time, the budget signals a steady and calibrated approach to fiscal consolidation, anchored in maintaining deficit target with continued emphasis on capital investment, it said.

CareEdge Global Ratings believes India’s recent trade deals along with its fiscal policy path uphold the BBB+/stable credit profile.
These could enhance the diversification and scale of exports and back medium-term growth.
While India’s public debt levels and interest burden are high, resilient domestic demand, diversified growth drivers and comfortable external buffers may back macroeconomic stability.

From a credit perspective, the improved tariff setting supports near-term growth prospects and enhances the predictability of export-linked revenues.

By placing India on a more competitive footing relative to other emerging market exporters, these agreements could support export momentum amid a fragmented global trade environment, remarked CareEdge Global.

While India’s public debt levels and interest burden remain elevated, resilient domestic demand, diversified growth drivers and comfortable external buffers are expected to support macroeconomic stability over the near to medium term, it said.

Sustained progress on revenue mobilisation, delivery on disinvestment targets and effective debt management will be critical to maintaining fiscal credibility and supporting India’s credit profile over the medium term, it added.

Fibre2Fashion News Desk (DS)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the American Chamber of Commerce in Bangladesh (AmCham) have welcomed the signing of a reciprocal tariff agreement with the United States, describing it as a positive development for the apparel sector.

The agreement was signed after nine months of negotiations.

BGMEA and AmCham Bangladesh have welcomed the signing of a reciprocal tariff pact with the US, terming it as a positive development for the apparel sector.
Garments manufactured using US inputs will be exempt from such tariffs and that will improve Bangladesh’s market access to the US, BGMEA noted.
The provision can encourage deeper supply-chain integration and promote value addition, AmCham said.

Garments manufactured in Bangladesh using cotton and man-made fibres imported from the United States will be exempt from such tariffs and that will improve Bangladesh’s market access to the United States, BGMEA noted.

It, however, emphasised that proper evaluation and traceability mechanisms must be ensured to fully benefit from the provision allowing the use of US-origin raw materials.

The trade body observed that while US cotton is of better quality, it is relatively expensive as well. If local spinning mills can ensure competitively priced yarn, the agreement could create substantial opportunities for export growth, it added.

The deal reflects constructive engagement between two longstanding economic partners and sends a positive signal to global investors amid heightened uncertainty in international trade, an AmCham statement said.

The provision that allows zero-tariff access for certain products manufactured with US inputs has the potential to encourage deeper supply-chain integration, promote value addition and strengthen backward linkages between US producers and Bangladeshi manufacturers, it added.

Fibre2Fashion (DS)