India to cap stimulus package at $60 bn to protect credit rating: Report

The government is likely to cap its overall spending on coronavirus-related relief at around 4.5 trillion rupees ($60 billion), due to concerns that excess spending could trigger a sovereign rating downgrade, two senior government officials said.

"We have to be cautious as downgrades have started happening for some countries and rating agencies treat developed nations and emerging markets very differently," the first official told Reuters.

On Tuesday, Fitch warned India's sovereign rating could come under pressure if its fiscal outlook deteriorates further as the government tries to steer the country through the coronavirus crisis.