India's sovereign rating may move up one notch - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

India's sovereign rating may move up one notch

Jan 28, 2000

According to newspaper reports, both Moody Investor Service and Standard and Poor (S&P) could upgrade India's sovereign rating by one notch in view of the recent reforms passed by the government. The government's recent initiatives that have led to a rethink on India's sovereign rating include:

  • Passage of the insurance regulatory authority bill
  • Liberalising ADR/GDR issues of local companies
  • Declining interest rates as signaled by a cut in the small savings and provident fund rate

However, there are still some concerns:

  • A low tax to GDP ratio
  • High debt burden
  • The tense geopolitical situation

It has been generally accepted that the present government is prepared to take tough decisions in order to unleash second generation reforms. The move is essential in view of the near stagnation in the reform process that created doubts over India's commitment to reforms over the last couple of years.

An upgrade in India's rating will benefit the country in a number of ways. First, accessing foreign debt markets will become more economical for the government and domestic companies, as the risk attached to such debt would reduce. Second, India's attractiveness in terms of investment opportunities would increase leading to an inflow of foreign funds. This will help finance the investment boom in the country that is likely to be stimulated by the infrastructure sector. Generally speaking, there will be an overall improvement in India's economic outlook in the international markets.

Equitymaster requests your view! Post a comment on "India's sovereign rating may move up one notch". Click here!

  

More Views on News

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

More Views on News

Most Popular

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS