GDP slump could lead to downgrade: Fitch

PRESS TRUST OF INDIA

New Delhi, Dec 3: Fiscal slippages and declining growth could result in India’s rating downgraded to below investment level, rating agency Fitch has warned.
 Fiscal slippages in the run-up to 2014 general elections and declining growth could result in India’s rating downgraded to below the investment level, global agency Fitch warned on Monday, pegging GDP growth for the current financial year to 6 per cent.
 “Policy slippage and/or mounting evidence of a structural decline in the trend growth rate, such as protracted relatively weak economic data, could cause the ratings to be downgraded,” Fitch said in a statement.
 A loosening in fiscal policy in view of 2014 general elections, it added, “could further weaken India’s public finances and put pressure on ratings“.
 According to the credit rating agency, recent reform proposals, while potentially growth-supportive, need time to work and face political risks to their implementation.
 “But political and implementation risk remains considerable. Several proposals still require legislative approval, and policy reversals cannot be ruled out.
 “The approach of general elections in 2014 mean there is little time to fully enact reform. These risks are reflected in the Negative Outlook,” it said.
 Fitch, however, said that an improved investment climate which supports greater infrastructure investment, and a sharp sustained decline in inflation, would support the current BBB rating, which is a notch above the investment grade.
 Referring to India’s economic growth, Fitch said, “We expect the economic recovery to be shallow. We forecast real GDP growth to fall to 6 per cent in FY13 (year to March 2013) from 6.5 per cent in FY12...” it said.
 The agency had earlier pegged the GDP for the ongoing financial year at 6.5 per cent.
 India’s GDP growth slumped to 5.3 per cent in the second quarter of the current fiscal, from 6.7 per cent year-on-year.

Lastupdate on : Mon, 3 Dec 2012 21:30:00 Makkah time
Lastupdate on : Mon, 3 Dec 2012 18:30:00 GMT
Lastupdate on : Tue, 4 Dec 2012 00:00:00 IST




  • del.icio.us
  • StumbleUpon
  • Digg
  • TwitThis
  • Mixx
  • Technorati
  • Facebook
  • NewsVine
  • Reddit
  • Google
  • LinkedIn
  • YahooMyWeb
  • Print News

Enter the Security code exactly as you see it in the image security code is CaSe SeNsItIvE(Cookies must be enabled)
  • MORE FROM BUSINESS

  • Kashmir

Shia-Sunni unity: Geelani to lead ‘peace march’ in Srinagar

GK NEWS NETWORK

Srinagar, Dec 3: The Hurriyat Conference (G) is organizing a peace march on December 5 (Wednesday) from downtown Srinagar under the leadership of its chairman Syed Ali Geelani.   “We will offer More



  • Srinagar City

‘Unwanted curfews’ irk Shaher-e-Khaas traders

SAY BUSINESS BADLY AFFECTED, SEEK SAGAR’S INTERVENTION

SYED IMRAN ALI HAMDANI

Srinagar, Dec 3: The traders of old City, the Shaher-e-Khaas are up in arms against the government for “imposing unwanted curfews in the area” for the past few days adding that the business has been badly More




  • Jammu

Income Rs 89,000; Assets Rs 3.40 crore

Ex-Minister Charge-Sheeted In Disproportionate Assets Case

GK NEWS NETWORK

Jammu, Dec 3: After more than 23 years of investigation, Jammu and Kashmir Vigilance Organisation Monday presented charge-sheet against a former minister and MLA Reasi for allegedly acquiring assents disproportionate More



  • Court Watch

JK Chief Secretary gets 1 day to file compliance report

‘Bureaucrats Need To Be Pulled Up For Taking Judicial Process For Granted’

REHABILITATION OF POOR GIRLS

D A RASHID

Srinagar, Dec 3: The Jammu and Kashmir Monday granted one more day to the Chief Secretary to file a compliance report in a case of rehabilitation of poor girls ‘exploited in the garb of providing jobs More



  • World

Now we have a state: Abbas

Ramallah, West Bank, Dec 3: Palestinian President Mahmoud Abbas returned to the West Bank after winning upgraded UN status for the Palestinians, telling cheering crowds: “Yes, now we have a state.”  More



  • Pulwama

Pulwama sans lavatories

People face inconvenience

Pulwama: Failure of the municipal authorities to construct public lavatories here is causing immense problems to the people. Though Pulwama was accorded district status nearly three decades ago it sans More



  • GKeducation&Careers

Student Counseling:An area of darkness

There’s a pressing need to make counseling services available in government schools, universities and colleges

CONCERN

PUPINDER S BALI

As reports of student stress and suicides because of academic,peer, and parental pressures multiply, country top schools managements have been forced to wake up to the importance of student counseling More



ADD
Designed Developed and Maintaned By Imobisoft Ltd /Algosol Software Solutions