India’s 2013/14 budget unveiled last week offers a “realistic” plan to meet the country’s fiscal deficit target, and should be a credit positive for its sovereign ratings, Moody’s Investors Service said in a report today.
India’s fiscal consolidation plans could pave the way for monetary easing, thus helping revive economic growth, Moody’s added.
“This plan of modest fiscal consolidation is credit positive for the sovereign because against a backdrop of subdued GDP growth and upcoming elections, it is a realistic effort to correct India’s macroeconomic imbalances,” Moody’s said in its report.
Moody’s Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody’s commitment and expertise contributes to transparent and integrated financial markets. The firm’s ratings and analysis track debt covering more than 115 countries, 10,000 corporate issuers, 22,000 public finance issuers, and 82,000 structured finance obligations.