Moody’s: India's fiscal flexibility hindered by high debt burden, weak debt affordability
|Moody’s Investors Service is out with another report on Wednesday, this time on the Indian economic assessment, given the country’s high debt burden.
Key Quotes:
“India's fiscal flexibility hindered by high debt burden, weak debt affordability.
India's debt burden will rise unless nominal GDP growth increases durably above 11%.
Assume India real GDP growth at 6.3% in FY21 from rates of sub-5%, keep debt burden stable around 70% of GDP.
High India debt burden, weak debt affordability would constrain the capacity to implement social, infra investment.”
Meanwhile, at India open, the USD/INR pair fell to the weakest level since January 2 at 71.37, having failed several attempts to take-out the key 72.12 resistance seen on the weekly chart. The rupee tracks the gains in its Asian peers, as the US-Iran geopolitical tensions subsided.
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