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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
