India's economic growth prospects remain strong: S&P

NEW DELHI: The international credit rating agency Standard & Poor's on Friday said that India's growth prospects would remain strong on account of buoyancy in its investment climate and good government debt market, notwithstanding the global financial meltdown.

"Given the buoyant private and public investments with some progress in economic reforms, India's business environment is likely to improve in the years ahead, notwithstanding the current dislocations in global credit markets," S&P said in a statement on Friday.

Reaffirming the investment grade rating (BBB-) for India, the rating agency said: "It reflects India's strong economic growth prospects and its deep government debt bond, which helps accommodate its weak fiscal position."

S&P retained its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The outlook on the long-term rating also remains stable.

These ratings suggest that India can meet its financial obligations in both the short and long run debts.

Earlier in July, global credit rating agency Fitch downgraded India's credit outlook from stable to negative citing deteriorating fiscal position of the government on account of increasing oil and fertiliser subsidy bill.

"Its (India's) economic growth has benefited from higher consumption and private investment, due to a growing middle class and favourable demographics," said S&P's credit analyst Takahira Ogawa in the note.