S&P's rating an affirmation that the Indian economy is on right path

The recent Budget proposals came in as a disappointment for most analysts in the absence of strong measures

Standard and Poor’s (S&P’s) rating affirmation for India on Thursday comes at a time when most economists expect the economic growth as measured by the gross domestic product (GDP) to grind lower over the next few months with a possible recovery only in the second half of the calendar year 2020.

On Thursday, S&P affirmed India’s sovereign rating of 'BBB-'and maintained a ‘stable’ outlook and said that it believes that structural outperformance remains intact. That said, it did caution against the ‘precarious’ fiscal situation in the backdrop of elevated fiscal deficit and the level of government’s indebtedness.

Analysts see this