India not vulnerable to US recession: S&P
Unlike South Korea and Singapore, India is not vulnerable to fallout of the US recession, says a report by the international credit rating agency Standard and Poor's.
By PTI |
NEW DELHI: Unlike South Korea and Singapore, India is not vulnerable to fallout of the US recession, says a report by the international credit rating agency Standard and Poor's.
However, the US recession could "lead to a decline in capital inflows and weaker exports particularly of services. This could affect the capital and current account and put pressure on the balance of payment surplus", said the S&P report `Asia Pacific sovereigns brace themselves for headwinds from US'.
In addition to India, China too has been placed in the category of `not vulnerable' countries by the rating agency.
Those which are `vulnerable' to the US recession are Pakistan, Singapore, South Korea, Malaysia, Philippines and Thailand. The countries which fall in the `moderately vulnerable' category include Japan, Australia, Hong Kong, Indonesia and Sri Lanka.
The report further pointed out that "economies with a relatively small export sector and a large domestic market, such as India ..., are going to be much less vulnerable to a US recession-induced fall in export demand".
However, the US recession could "lead to a decline in capital inflows and weaker exports particularly of services. This could affect the capital and current account and put pressure on the balance of payment surplus", said the S&P report `Asia Pacific sovereigns brace themselves for headwinds from US'.
In addition to India, China too has been placed in the category of `not vulnerable' countries by the rating agency.
Those which are `vulnerable' to the US recession are Pakistan, Singapore, South Korea, Malaysia, Philippines and Thailand. The countries which fall in the `moderately vulnerable' category include Japan, Australia, Hong Kong, Indonesia and Sri Lanka.
The report further pointed out that "economies with a relatively small export sector and a large domestic market, such as India ..., are going to be much less vulnerable to a US recession-induced fall in export demand".
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