New Delhi, S&P Global Ratings, a well-known company that evaluates the financial health of countries has upgraded the outlook of the Indian economy from stable to positive after 14 years of gap, based on the better public spending in the last 5 years and upgradation of consistent reforms and policies: Having confidence in India’s economic future.
In 2014, S&P upgraded India’s outlook from negative to stable, the positive outlook on India is anticipated through India’s economic growth, previously volatile, which has now become robust since 2014. A string of prominent corruption cases triggered the loss of investor confidence in the Indian economy. But between 2014 and 2022, India’s GDP ( Gross Domestic Product) per capita increased by roughly 40% in eight years.
#NDTVWorld with @ParmeshwarBawa | S&P Global Ratings has upgraded India's sovereign outlook after 14 years to 'positive,' citing improved quality of public spending and expectation of broad continuity in reforms and fiscal policies.
NDTV's @SakshiBajaj19 gets us the details. pic.twitter.com/mpzkEWRrTF
— NDTV (@ndtv) May 30, 2024
The S&P expects the continuity in growth of the Indian economy irrespective of the June 2024 general election results,
“Over the next two to three years, strong economic fundamentals will support the growth momentum. We anticipate a significant continuation of budgetary and economic changes regardless of the election results” said S&P.
India’s economic growth is improving due to government spending in the last four to five years. Strong public investment and consumer demand are expected to sustain solid growth over the next three to four years. The budget allocation has shifted to infrastructure spending with the Modi Government’s administration and is expected to increase almost 4.5x from a decade before.
Also Read: UK and Japan Enter Recession, India Poised To Become Third Biggest World Economy
Finance Minister Nirmala Sitharaman’s Bullish on the Indian Economy
According to Finance Minister Nirmala Sitharaman, if BJP wins the elections and establishes a stable government, the stock markets will boom in June. A stable government offers predictable policies and consistent frameworks, which are crucial for the stock market, providing strong reasons for this anticipated surge.
In the interview to News18, Finance Minister #NirmalaSitharaman said S&P Global Ratings revising its outlook on India from 'stable' to ‘positive’ is a good omen for the #Indianeconomy, adding that a BJP victory on June 4 would lead to solid #bullsmarket
By: @AmanKayamHai_ and… pic.twitter.com/5puMVjik9q
— News18 (@CNNnews18) May 30, 2024
Markets operate based on numerous factors, with domestic conditions being particularly significant. “In a global context marked by widespread volatility, major economies represent the largest markets for many emerging economies to export their products. With signs of recession looming, if these economies are fortunate, they will manage to recover,” said Nirmala Sitharaman.
S&P Global Ratings' revision of its outlook on India from 'stable' to 'positive' is a welcome development. This reflects India's solid growth performance and a promising economic outlook for the coming years.
It has been possible due to the series of macroeconomic reforms…
— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 29, 2024
The Union Home Minister Amit Shah, has advised investors to invest before June 4th as the markets are expected to shoot up “We are confident that on 4th June, the BJP will hit a record number of Lok Sabha seats, and the stock market will also hit new record high”
