Publication

In this paper, the author points out that since 2009 rating agencies have been quite unhappy with the developments in the Indian economy, and particularly with the lack of fiscal prudence, the inflationary pressures and the lack of business confidence. Unless the appropriate measures are taken, it is highly likely that there will be further downgrades. The author contends that Indian bonds could even be downgraded to junk-status, which would impact severely on the government's ability to raise capital overseas. And without external capital, India’s economic growth would be seriously hampered.