S&P Global Ratings may upgrade India’s credit rating by FY27, synchronous with the tag of the third-largest economy if the fiscal deficit narrows meaningfully, a State Bank of India research report said.
The ratings agency S&P on May 29 revised its outlook for India to positive from stable on robust growth and rising quality of government spending.
“The slew of macro-economic reforms initiated in sync with fiscal discipline, along with colossal public capex that is expected to crowd in private capex in a big way has ensured a robust and virtuous investment and consumption environment that has also been accepted by S&P who reviewed the India Sovereign rating to BBB-/Positive/A-3 from erstwhile BBB-/Stable/A-3, paving the way for better brand equity of country in debt origination/access to credit on favourable terms,” SBI said in the report.
"This, we believe, is an ode to the Indian democracy and uncharted possibilities in its lap to the future as a knowledge centric economy benefiting the world at large," it added.
S&P Global Ratings retained India's sovereign rating at “BBB - ” but raised its outlook to 'positive' from 'stable'.
Projections show that under usual trends and accounting for RBI surplus, the general government fiscal deficit will fall below seven percent in FY27. The external debt stabilising Current Account Deficit ignoring valuation changes is estimated under current trends at 1.15 percent, it said.
“S&P may raise the ratings if India's fiscal deficits narrow, meaningfully and general government debt falls below seven percent of GDP on a structural basis,” SBI said.
2024 Election: Female voters outstrip men
Meanwhile, on the ongoing Lok Sabha elections, the SBI report said that a total of 57.8 crore voters cast their votes in 2024 as compared to 54.3 crore in 2019, an increase of 3.45 crore voters, as per the Election Commission. Out of this 3.45 crore voters, female voters increased by 1.73 lakh while male voters increased by 1.62 lakh. Thus female voters outstripped men decisively. Hence for every additional 100 male voters, there are 107 female voters.
Interestingly, for every additional 100 male voters, there are 115 and 111 female voters in SC & ST constituencies, respectively, as compared to 105 additional females per 100 males in General constituencies, SBI said.
“If we map the change in female voter-turnout during 2024 and 2019 with the change in number of female deposits accounts during 2023-2019, the results indicate a high correlation of 0.95. In otherwards, financialisation of women voters leads to the rise in women voter turnout during 2019-2024,” it added.
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