For the first time in over a century, world’s largest & most liquid bond market doesn’t have an Aaa rating. Over the past decade, US govt’s fiscal metrics have deteriorated considerably.
Ratings agency kept India’s rating & outlook unchanged, citing Indian economy’s growth, banking success on the one hand versus high debt, fiscal deficit and interest payments on the other.
With agencies sticking to their methodology in these times, an emerging economy rating and outlook appear to be worse regardless of whether its government is fiscally prudent or not.
For every upgrade of rupee debt of Indian firms since 1 April there have been about 11 downgrades, leaving this quarter set to be worst on record if sustained.
Electoral competition now appears dominated by welfare delivery and governance metrics, but ideology has not disappeared in Tamil Nadu. Instead, it has become strategic.
India’s fast-growing data centre sector may strain state electricity networks; Central Electricity Authority has urged Maharashtra, Andhra Pradesh, Telangana and Tamil Nadu to boost capacity.
On lessons from the ongoing West Asia conflict, he says that while US had superior technology and strike capability, Iran used geography to its advantage.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
COMMENTS