India better placed : Fitch |
India is better placed than many of its peers after the American central bank - the US Federal Reserve - raised its key interest rates, said credit rating agency Fitch Ratings on December 17, 2015, according to Thomas Rookmaaker, director, Sovereign Ratings. India`s external balances have significantly improved since mid-2013, with foreign exchange reserves rising by some $65 billion to $353 billion as of November 2015 and the current account deficit narrowing. India had enough headroom in monetary policy to accommodate Fed rate hike. Besides , India is less dependent than several of its peers on commodity exports, and has thus not been negatively affected by the global rout in commodity prices. He added that only a small part of India`s sovereign debt is held by foreigners or is denominated in foreign currency. Moreover, India`s favourable economic growth outlook makes India relatively attractive for foreign investors.
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