S&P raises India outlook, eyes reforms under Modi

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Ratings agency Standard & Poor’s raised India’s credit outlook to “stable” on Friday (Sep 26) , saying the prospects for economic reforms had grown under Prime Minister Narendra Modi’s new right-wing government.

Although S&P kept its main sovereign credit rating unchanged at “BBB-“, the agency said it was “revising the outlook on the long-term rating to stable from negative” as it expected growth rates to pick up pace.

“The stable outlook reflects our expectation that the newly elected government will be able to implement reforms that spur growth, which in turn improves fiscal performance,” it said in a statement. “India’s improved political setting offers a conducive environment for reforms, which could boost growth prospects and improve fiscal management,” it added.

The announcement comes a day after the Asian Development Bank also expressed hope of a “turnaround” in India’s economy under Modi who coasted to victory in May’s general election on a pro-business platform. Modi is beginning his first visit this weekend to the United States since his election, a trip which is largely focused on boosting trade and attracting investment.

India’s economy expanded 5.7 per cent in the first quarter of the financial year, the best quarterly performance in over two years. A sharp narrowing of its current account deficit – the broadest measure of trade – also boosted investor sentiment.

But despite winning the biggest mandate in 30 years, Modi’s Bharatiya Janata Party (BJP) government is yet to introduce big-ticket reforms that analysts say are needed to really fire up growth.

S&P said implementation of reforms was key if India hopes to maintain or improve its ratings. “We may lower the rating if the government’s structural reform agenda stalls such that economic growth does not accelerate, or fiscal and debt ratios fail to improve,” the agency warned.

 

 

 

Source : Channel News Asia | September 26, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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