The affirmation comes as a breath for the government amid the ratio of the increase in debt-to-pdb (gross domestic product), which is projected to have crossed 90% of GDP at FY21, higher than Indian colleagues.

S & P Global Ranking on Tuesday stressed the lowest investment level sovereignty (BBB-) for India with a stable prospect, holding that the country’s recovery will add steps throughout the second half of the fiscal year 2021-22 (FY22) and into the following years , help stabilize the overall credit profile.

“Stable Outlook reflects our expectations that the Indian economy will recover after the resolution of the Coronavirus pandemic and that strong state external arrangements will act as a buffer against financial strains even though there is an increase in government funding needs for the next two years,” the rating agency said.

The affirmation comes as a breath for the government amid the ratio of the increase in debt-to-pdb (gross domestic product), which is projected to have crossed 90% of GDP at FY21, higher than Indian colleagues.

Two other main ranking agents, Fitch and Moody’s, have the lowest level of seduction in investment levels for India with negative prospects.

The rating is the expected path, the head of the Economic Advisor at the Ministry of Finance, K. Subramanian, said in an interview for Mint.

“As we have said, the most important growth for the sustainability of the debt, and given the growth of India for India this year and advanced, we state that the sustainability of the debt will not be a problem. It is something that is recognized by the rating agent,” he said.

S & P states that it can raise rankings if the Indian economy shows a stronger recovery than expected for the next 24 months, in such a way that the performance of the country’s long-term growth is intact and fiscal metrics increases dramatically.

“We can also raise rankings if we observe a sustainable and substantial increase in the effectiveness of central bank monetary policy and credibility, so inflation is managed at a lower level than time to time,” he said.

However, S & P reminded that it could reduce the ranking if the Indian economy recovered significantly more slowly than expected from FY22 and the general government deficit and the accumulation of material related to material exceeded its estimates, indicating the weakening of Indian institutional capacity to maintain a sustainable community to defend the community sustainable to maintain a sustainable society to maintain a sustainable community to maintain a sustainable society to maintain a sustainable society to maintain a sustainable community to maintain a sustainable community to maintain a sustainable community to maintain a sustainable community to maintain a sustainable society to defend the community sustainable. Finance.

The rating agency said the government’s implementation of economic reform would be the key to maintaining the prospect of healthy Indian economic growth.

S & P has projected the Indian economy to grow at 9.5% in FY22 on a very weak base of a 7.3% contraction record on FY21. It is said that this year’s strong government expenditure program must help the economy heal faster, but it will also further improve its weak finances.

“This weaker balance can challenge the capacity of India to maintain sustainable public finance and balanced economic growth, if the recovery is slower than we anticipated,” said the rating agency.