Downgrade Risk Continues To Haunt India
  • Elizabeth George
  • Sep 30 2013

September 30: Macquarie Bank’s Nizam Idris says the risk of a rating downgrade will come back to haunt India if the fiscal deficit is not controlled. “The biggest factor is how the government can go back to some fiscal discipline to control the CAD and avoid a downgrade,” he says. Kotak Mahindra Bank’s Indranil Pan agrees the downgrade risk remains. “There is a strain on the fiscal from the tax side,” Pan says, adding that government needs to cut planned expenditure, which will hurt growth.