The S&P Global Ratings recently said that the Indian Economy is to grow at 11% in 2021-22. Earlier, S&P had predicted that India will grow at 10%.
Key Findings
- In the next couple of years, India is to grow at 6.1% to 6.4%.
- The credit conditions have improved for Asia-Pacific banks.
- With countries rolling out vaccination programmes, economies are recovering and regional financial circumstance are supportive in the Asian region.
- The pandemic has left deep negative effects on lenders. The banks will take years to recover from COVID-19 crisis.
- Most of the economic activities became standstill during April-June in 2020. This contracted GDP of the country massively by 23.9%.
- Three speed recovery patterns have emerged in Asia-Pacific. China, Taiwan, New Zealand lead the group where economic activities are above pandemic level. Australia, Korea and Japan are in the middle group where the activities should reach pre-pandemic levels in mid 2021. India has now joined this group.
The S and P currently has a BBB rating on India.
What is BBB rating?
BBB is Better Business Bureau. It was founded in 1912. It is a non-profit trust that focuses on advancing market places. It has more than 106 independent organisations from USA and Canada. It is not affiliated to any governments. It provides an A+ through F grade system. The grades offer confidence of BBB that business is operating in a trustworthy manner. Around 400,000 local businesses are affiliated to BBB rating.
S&P Global Ratings
It is an American credit rating agency. It publishes financial research and analysis on bonds, stocks, and commodities. It is considered as the largest of the “BIG THREE” credit rating agencies. The “BIG THREE” credit rating agencies are Moody’s Investors, Fitch Rating and the S and P Ratings (S and P is Standard and Poor’s).