Ratings agency Moody’s Investors Service has maintained a Baa3 foreign currency rating and Ba2 local currency sovereign rating, which is non-investment grade, on India.
“This is clearly a growth-oriented budget and contains a slightly larger than expected headline deficit number, but it is broadly consistent with near-term stability in the government’s debt trajectory,” Aninda Mitra, a senior analyst at Moody’s, said.
This is largely based on the estimated fiscal deficit, which is expected to balloon to 6.8 percent of GDP, its highest in 16 years. (more…)