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

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

KG cracker; courtesy: Ineos

Textiles | On 22nd Sep 2018

Ineos to invest £60 mn in the UK to expand production

Ineos has announced plans to invest £60 million to expand its...

Interviews View All

Amrit Sethia, SOIE

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Stefan Warnaar, Peak to Plateau

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search