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The S&P Global Ratings is out with its take on the Indian economy, in light of the recent fiscal budget.

Key takeaways

India’s bigger budget is a shot in the arm for the economy

Currently see no material effect from budget on India’s key credit factors.
India economy’s brightening growth prospects will be critical to maintaining sustainability of public finances.

India general government debt likely to hover at more than 90% of GDP over next few years.

It will take a long time for India’s economy to heal from the pandemic.

Forecast India real GDP growth of 10% in fiscal 2022 as activity resumes, country continues to reopen.

Estimate India general govt net stock of debt will surge by about 18% to 92% of GDP by end of fiscal 2021.

India government’s disinvestment campaign will be crucial to its revenue prospects.

Indian government’s INR200 billion capital allocation for public sector banks sufficient for now.