Indian economy is growing and improving. In the last few months, we have seen a number of world leaders visited India to improve economic ties with the country. Now, Standard & Poor's (S&P) has raised the outlook rating for India from 'stable' to 'positive'. You can read the press release of S&P in their website. This raise in status has happened mainly because of the financial reforms carried in last month's national budget by the Indian Finance Minister P Chidambaram.
Well, unfortunately I am not an expert on international finance and therefore, I cannot go into technical details. As far as I understood, Standard & Poor's (S&P) is pleased with the current condition of the Indian economy and that means that more foreign companies will be interested to invest in India, give loan to Indian companies and most of all come to do business in India. I like to quote from the press release:
efforts to rein in their budget deficits. The central government's 2006/2007
Budget puts fiscal consolidation back on track, while the assessment on state
governments' comes in the wake of better-than-expected fiscal outlook. The
general government deficit is expected to fall below 8.0% of 2006 GDP from 10%
in 2002."
So, Indian government is running its economy much better than the past- this is what I deduced from the press release of Standard & Poor's.
Do you agree with Standard & Poor's (S&P)?
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