This suggests that India’s creditworthiness, which is important to investors, has gotten better. On the eve of the Lok Sabha election’s final round, the rating was raised. It makes sense that the Union Government has welcomed the revised forecast, stating that it shows strong growth performance and promising prospects for the upcoming years.
S&P, on the other hand, anticipates continued fiscal and economic reforms, regardless of the results of the general election.The impressive comeback of the Indian economy following the chaos wrought by the Covid-19 outbreak has been endorsed by the S&P. It projects 6.8% GDP growth for India in this fiscal year.
Source: TOI
This is positive news in the midst of a worldwide slump. Moving forward, the GDP growth rate is predicted by the Reserve Bank of India (RBI) to reach 7% in 2024–2025. The RBI only sent the government a record-breaking Rs 2.1 lakh crore dividend last week.
The administration intends to drastically cut the fiscal deficit over the next two years, and the cash may be utilised to that end.The most recent S&P rating, however, did not seem to impress the stock market, as the BSE Sensex and Nifty both fell significantly on Thursday. This decline is thought to be caused by investors being more anxious in the lead-up to the election results.
Source: NDTV
Last week, Indian stock indices witnessed an incredible rally that defied the decline in worldwide markets. However, the reversal indicates that as the counting day approaches, there may be a shift in market opinion. Is it possible that the BJP-led alliance’s resounding win is no longer a given?
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