Drishti ias current affairs
drishti current affairs magazine Published this article page no 77 India is the most indebted emerging market. Deteriorating fiscal position or high deficit. Budgetary support for nearterm growth with lack of clarity on longterm fiscal consolidation. Challenges in implementation of policies to mitigate risks of a sustained period of low growth such as little financial headroom to respond to potential growth shocks. 27 Reasons given by Government for its higher SCR Zero sovereign default history. High GDP growth rate low inflation and V shaped recovery. Improved financial stability with large recovery of bank bad loans. Recently NARCL and IDRCL were also set up to address the bad loans. Higher Foreign Exchange Reserves when compared to the country’s debt. High political stability with improved Ease of Doing Business Rule of Law corruption control etc. Impact of Poor Rating Reduced Investors’ confidence Poor rating acts as a deterrence against investment in emerging and developing economies like India drishti current affairs magazine subscription buy.

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