S&P : India’s Structural Issues Limit Growth And Effectiveness Of Fiscal Consolidation

India’s slowing economy constrains the sovereign credit quality despite some progress in reforming fuel subsidies and the government’s commitment for fiscal consolidation. Standard & Poor’s Ratings Services believes India’s key rating strengths are a robust participatory democracy of more than 1 billion people and a free press; low external debt and ample foreign exchange reserves; and an increasingly credible monetary policy with a largely freely floating exchange rate. Nevertheless, the country’s significant weaknesses are an onerous burden from its public finance, lack of progress on structural reforms, and shortfalls in basic services typical of a nation with a GDP per capita of US$1,500. We believe our ‘BBB-‘ foreign and local currency long-term sovereign credit ratings on India have more than a one-third chance to be lowered. That’s because India’s growth has been slowing in the past two years and its external debts are rising even though they are low.

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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