Home / Knowledge / News / Textiles / Fitch retains India's rating at 'BBB-', outlook stable
Fitch retains India's rating at 'BBB-', outlook stable
08
Dec '15
America's Fitch Ratings has affirmed India's BBB- rating with a stable outlook, forecasting the country will grow 7.5 per cent in the current fiscal and 8 per cent next year.

"India's positive GDP growth outlook stands out globally," Fitch said in a statement. It said growth is supported by the government's reinforced capital expenditure and gradual implementation of a broad-based structural reform agenda.

The Indian economy grew 7.2 per cent in the first half of the current financial year and the 7.5 per cent growth forecast implies acceleration in the second half. According to Fitch's forecast, India will grow at 8 per cent in FY17, from 7.3 per cent in FY15.

Fitch welcomed the government's reforms drive. "The Reserve Bank of India's policy rate cuts of 125bp in total in 2015 are also likely to contribute to higher GDP growth, even though monetary transmission is impaired by relatively weak banking sector balance sheets," it said.
"The government continues to steadily roll out its ambitious structural reform agenda... that will likely improve the business environment, including changes in the FDI regime," Fitch said. The agency pointed out that the government has been unable shore up Parliamentary support for major reforms such as the Goods and Services Tax.

The agency also noted that those reforms that require only executive approval continue to be implemented and legislative reforms can still be pursued at the state level.

It said economic reforms are improving India's relatively weak business environment and standards of governance, but investors continue to face obstacles such as infrastructure bottlenecks.

Fitch noted that India is not immune to external shocks but seems less vulnerable than many other countries. The agency pointed to the sharp decline in the current account deficit to drive home its point. The agency expects the current account deficit to drop to 1.1 per cent of GDP in 2015-16, compared to the 'BBB' median of 5.6 per cent, and a build-up of reserves to 7.7 months of current external payments. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search