India’s boom maintained, positive report from America, no fear of tariff






New Delhi

Global credit rating agency S&P Global has increased India’s Longerm Sovereign Credit Retting from ‘BBB-‘ to ‘BBB’, citing strong economy and destitute growth. This rating means that India’s attitude remains stable and is moving towards becoming the world’s third major economy. At the same time, the country is also dealing with global challenges like tariffs and trade.

The statement of S&P has come to light at a time when US President Donald Trump described India’s economy as ‘dead economy’ and announced a tariff on India. The US rating agency said in its statement that this rating of India shows a better policy that controls its fast economic growth and inflation.

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The agency said that better efforts for revenue and efforts to improve spending have strengthened India’s loan standards. Rating agency S&P Global has said that the impact of American tariffs on the Indian economy will be manageable and overall its effect will be modest, which will not affect India’s long -term development prospects.

60 percent revenue is being generated in India itself
The rating agency said that we believe the influence of American tariff on the Indian economy will not be too much. India is less dependent on business and about 60 percent of its economic revenue comes from domestic consumption. We estimate that if India has to stop importing Russian raw oil and fiscal costs are fully borne by the government, then it will not have much effect.

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India exports America so much
The agency said that America is the biggest business partner of India, but still we do not think that 50 percent tariff will not have any significant impact on India’s development. India’s export to America is about 2 percent of GDP. Keeping sector exemption on pharmaceuticals and consumers electronics, the Indian Export Risk under tariff is less than 1.2 percent of GDP. Although this may have a lump sum effect on the last development, we believe that its effect will be modest and it will not affect India’s long -based development possibilities.

Yiforn Fua, director of S&P Global Ratings, expressed a similar opinion on Wednesday. Fua said that Trump’s tariff is unlikely to affect India’s economic growth. The report said that the effect of tariffs will be very less or not in the long term, because India can also find a second option.

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