Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

India less vulnerable to external shocks: S&P

The US-based rating agency expects the current account deficit (CAD), which is the difference between inflow and outflow of foreign exchange, to remain at a modest level of 1.4 per cent at the end of current fiscal and would continue at similar level till 2018.

Press Trust Of India

Updated:January 26, 2016, 10:24 AM IST
facebookTwitter Pocket whatsapp
India less vulnerable to external shocks: S&P
The US-based rating agency expects the current account deficit (CAD), which is the difference between inflow and outflow of foreign exchange, to remain at a modest level of 1.4 per cent at the end of current fiscal and would continue at similar level till 2018.

New Delhi: Indian economy is less vulnerable to external shocks as it is mainly driven by household consumption and government spending, and not dependent on hot money which can move out quickly, Standard & Poor's Rating Services said on Tuesday.

The US-based rating agency expects the current account deficit (CAD), which is the difference between inflow and outflow of foreign exchange, to remain at a modest level of 1.4 per cent at the end of current fiscal and would continue at similar level till 2018.

"We see India as having limited vulnerability to external economic or financial shocks. This is because growth in the economy is mainly driven by domestic factors, such as household consumption and government spending.

"At the same time this is a country that has low reliance on external savings to fund its growth. In other words, the banks are mainly deposit funded and don't rely on wholesale funding to grow their loan books," S&P Rating Services India Sovereign Analyst Kyran Curry said.

He said India's capital markets are diversified and deep enough for companies to raise funding. "Another favourable aspect of India external settings is that it is generally not subject to hot money inflows that can turn into outflows with shifts in investor sentiment. As such we see the external risks for India to be relatively contained," Curry said.

He said while export growth may be disappointing, the current account deficit likely to be a modest 1.4 per cent in 2015, with similar levels through 2018.

"Our forecasts are partly informed by our view of increased monetary credibility, which dampens the demand for monetary gold imports. In addition, we expect India to fund this deficit mostly with non-debt, creating inflows," Curry added.

The CAD in the first half of current fiscal stood at 1.4 per cent of GDP, lower than 1.8 per cent in the same period last fiscal. For full 2014-15 fiscal, the CAD stood at 1.3 per cent of GDP.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
SBI Life Insura 936.55 -6.35
Bharti Airtel 439.35 7.37
Reliance 1,509.75 3.46
Yes Bank 64.15 -2.58
ICICI Bank 493.50 -0.97
Company Price Change %Gain
SBI Life Insura 936.25 -6.33
Bharti Airtel 439.25 7.36
Yes Bank 64.15 -2.66
Sunteck Realty 390.65 0.24
Reliance 1,509.80 3.52
Top Gainers
Company Price Change %Gain
Bharti Infratel 250.55 10.47
Bharti Airtel 439.35 7.37
Reliance 1,509.75 3.46
Axis Bank 747.80 3.44
Power Grid Corp 195.45 2.52
Company Price Change %Gain
Bharti Airtel 439.25 7.36
Reliance 1,509.80 3.52
Axis Bank 747.85 3.43
Power Grid Corp 195.30 2.44
SBI 330.30 1.57
Top Losers
Company Price Change %Gain
Zee Entertain 285.85 -2.82
Yes Bank 64.15 -2.58
M&M 560.65 -2.27
TCS 2,108.80 -2.03
Tata Steel 401.75 -2.02
Company Price Change %Gain
Yes Bank 64.15 -2.66
M&M 560.60 -2.19
Tata Steel 401.90 -2.02
TCS 2,108.30 -2.02
Tata Motors 167.75 -1.35

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results