Indian economy is growing strongly
India is coping with global financial pressures better than the data suggests and concerns about the withdrawal of foreign investment are being exaggerated. Yephan Phua, director of international public finance rating S&P Global Ratings, said in an interview on Friday that the country has enough strength to handle the high current account deficit caused by the surge in oil prices.
This comment of the rating firm has come at a time when the oil crisis due to Iran war and record withdrawal from local stocks has taken the rupee to new low. The assessment reinforces confidence in India’s macroeconomic stability, as S&P in August raised the country’s credit rating to BBB from BBB- with a stable outlook.
the economy is strong
Yephan Phua said concerns about net outflows of foreign business investments are “somewhat exaggerated” as they mostly reflect the return of profits, while total investment remains strong. He said that the important thing is that the economy is actually strong and there are many investment opportunities.
To reduce the impact of Iran war on the economy, India is considering taking emergency steps to strengthen foreign exchange reserves. In this sequence, the government has increased the import duty on some precious metals including gold from May 13, 2026. The total tax which was earlier 6 percent has now been increased to 15 percent.
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