Fashion
Trade deals, fiscal policy back India’s credit fundamentals: CareEdge
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)