'Rocky' road ahead for large-deficit India: S&P

Moneycontrol Bureau Global rating agency S&P feels largest deficit, India and Indonesia, have a “rocky road” ahead of them in the near-term but has ruled out a repeat of the 1997 Asia crisis.In its report, “South And Southeast Asian Economies Grapple With Growth And External Financing Risks”, the rating agency says the current market turbulence is largely driven by uncertainties around the timing of cutback in bond purchases by the Federal Reserve, which has unfortunately coincided with recent cuts in GDP growth forecast in Asia, most notably for China.“The road may be rocky in the near term, particularly for the largest deficit countries – India and Indonesia – but we don't think this is the Asian crisis all over again,” says Standard & Poor's Asia-Pacific chief economist Paul Gruenwald.

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