Policymakers can make rating agencies warm up to India by being transparent on fiscal health, say some analysts As covid-19 keeps factories shuttered and workers at home, global rating agencies have been taking a close look at how India’s economy will weather the pandemic.
Warnings of an adverse change in India’s rating outlook, or, worse, a rating downgrade, are already flashing for India. All three global rating agencies have slashed their forecasts for the country’s gross domestic product (GDP) growth massively.
Fitch Ratings last month had warned that a “further deterioration in the fiscal outlook as a result of lower growth or fiscal easing could pressure the sovereign rating in light of the limited fiscal headroom India had when it