‘Possible due to macroeconomic reforms since 2014’: FM Sitharaman on S&P’s growth outlook revision to positive
Finance Minister Nirmala Sitharaman, welcoming S&P’s revision of India’s growth outlook from ‘stable’ to ‘positive’, said it has been possible due to the macroeconomic reforms taken by the Modi government since it was brought to power in 2014.
“S&P Global Ratings’ revision of its outlook on India from ‘stable’ to ‘positive’ is a welcome development. This reflects India’s solid growth performance and a promising economic outlook for the coming years. It has been possible due to the series of macroeconomic reforms undertaken since 2014, along with substantial outlay for capex, fiscal discipline, and decisive & visionary leadership,” said the finance minister.
She added that India is well on its track to become the third-largest economy in the third term of the government and become a ‘Vikshit Bharat’ by 2047.
Her comments come after the rating agency, after a gap of 10 years, raised India’s outlook to positive from stable on robust growth prospects for next three years, and public spending. It said provided the government continues its reforms and policies to keep the fiscal deficit under check, there’s hope for an upgrade.
S&P Ratings, however, retained India’s sovereign rating at the lowest investment grade of ‘BBB-’ and said that it expects broad continuity in economic reforms and fiscal policies, irrespective of the election outcome.
The results for the Lok Sabha elections 2024 will be declared on June 4. Bharatiya Janata Party (BJP) is anticipating a third term for Prime Minister Narendra Modi. However, irrespective of the election outcomes, S&P expects the incoming government to carry on economic reforms to support the ‘growth vigor’, infrastructure investment drive and commitment to fiscal consolidation.
The finance minister has been pushing for a rating upgrade on the back of improved fiscal management and strong economic fundamentals, high foreign exchange reserves.
The agency lauded India for a “remarkable comeback” from COVID-19 pandemic, and forecast India’s real GDP growth at 6.8 per cent this year.
