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India's Rise and the Debt Diplomat's Verdict - S&P Upgrades India Rating

By AltG Investment Research Lab

Photo of S&P Upgrades India Rating by AltG

Yesterday, S&P Global upgraded India's Sovereign Debt Rating, raising its country outlook to positive from stable after 14 years.

Long Overdue

India’s growth trajectory, the cleanup of banking balance sheets, and the fiscal prudence demonstrated by the government warranted an outlook upgrade sooner. India not only deserved the improved outlook but also merits an actual ratings upgrade.

It's All About the Balance Sheet

Sovereign ratings reflect the aggregated view of millions of corporate and retail balance sheets, ultimately forming the country’s balance sheet. For India to achieve the next phase of growth, Indian businesses must significantly enhance balance sheet efficiency and utilization.

Developing Fixed Income Capital Markets

For further development, India's fixed income capital markets need greater depth and liquidity. Indian companies and regulators should adopt a broader range of financial securities beyond standard equity and debt to meet evolving and complex financing needs. Custom financial products can optimize business financing, reduce capital costs, and offer capital flexibility. Supportive regulatory regimes and taxation policies will be crucial in fostering these developments.

Disclaimer: In the article "India's Rise and the Debt Diplomat's Verdict - S&P Upgrades India Rating" above - Any views, comments or communication (above or in the past) should not be construed to be investment advice by Alternative Growth (hereafter referred to as “AltG”) in any form whatsoever. AltG does not make an offer to sell or solicit to buy any securities.


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