MUMBAI: An S&P Global Ratings analyst said that sustaining economic growth, including by boosting infrastructure spending, would be critical to India’s ratings.

Kim Eng Tan, senior director at the rating agency, said India’s 2018/19 fiscal budget unveiled on Thursday had assumptions for income tax collection that were “somewhat optimistic,” adding that any shortfalls might lead to cuts in “the much-needed infrastructure spending.” Reduced infrastructure spending has the potential to hit economic growth, Tan told a conference call, a prospect that may lead S&P to consider reducing India’s rating. S&P rates India at “BBB-minus” with a “stable” outlook. “BBB-minus” is the lowest investment-grade rating.

Reuters