Latest news with #YeeFarnPhua
Time of India
4 days ago
- Business
- Time of India
Amidst Trump's tariff war, S&P upgrades India's credit rating to 'BBB' from 'BBB-'; outlook stable
In a big boost for the economy, credit rating agency S&P Global has upgraded India's credit rating from 'BBB-' to 'BBB' with a stable outlook, according to an ET report. The credit rating upgrade comes at a time when India is facing the threat of 50% tariffs from the Donald Trump administration. The agency indicated that the stable outlook is based on anticipated policy consistency and significant infrastructure investments, which are expected to enhance India's long-term economic growth. S&P also mentioned that the effects of US tariffs on India are likely to be manageable, with strong economic fundamentals anticipated to sustain the country's growth trajectory over the next two to three years. "We believe the effect of US tariffs on the Indian economy will be manageable. India is relatively less reliant on trade and about 60% of its economic growth stems from domestic consumption. We expect that in the event India has to switch from importing Russian crude oil, the fiscal cost, if fully borne by the government, will be modest given the narrow price differential between Russian crude and current international benchmarks," S&P Global said. During trade policy discussions, Trump referred to India as a "dead economy" and expressed dissatisfaction with New Delhi's decision to keep purchasing inexpensive oil from Russia. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo "I don't care what India does with Russia. They can take their dead economies down together," Trump reportedly stated. The Trump administration's decision to implement a 50% tariff (comprising a 25% base tariff and an additional 25% on India's crude oil trade with Russia) is not expected to significantly affect the Indian economy or its growth trajectory, according to S&P Global Ratings. S&P has stated that these US tariffs do not threaten India's favorable sovereign outlook. On Wednesday, S&P Global Ratings Director YeeFarn Phua expressed that India's growth would not be impacted by Trump's tariffs due to its limited reliance on trade, while maintaining a positive sovereign ratings outlook. As reported by PTI, when asked about the potential risks to India's positive outlook from US tariffs, YeeFarn clarified that India's economy would remain stable, highlighting that exports to the US account for only 2% of India's GDP, indicating low trade dependency. "I don't think the tariffs imposed on India will affect economic growth, mainly because India is not heavily trade-dependent. If you consider India's export exposure to the US relative to GDP, it is just about 2%," YeeFarn Phua stated. S&P anticipates India's GDP growth to remain consistent at 6.5% for the current fiscal year, mirroring the performance of the previous year. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Hans India
4 days ago
- Business
- Hans India
US tariffs don't deter India's growth story: S&P
New Delhi: Trump tariffs will not have any impact on India's growth, as it is not a trade-oriented economy, and its sovereign ratings outlook will continue to remain positive, S&P Global Ratings Director YeeFarn Phua said on Wednesday. In May last year, S&P had upgraded the outlook on India's sovereign rating of 'BBB-' to positive, citing robust economic growth. On August 6, US President Donald Trump announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. The White House said the measure responds to India's continued purchase of Russian oil. Replying to a query on whether the tariff imposition poses downside risks to the positive outlook on India, YeeFarn said: 'I don't think the tariffs imposed on India will have an impact in terms of economic growth, largely because India is not a very trade-oriented economy. And if you look at India's exposure to the US in terms of exports to GDP, it is just about 2 per cent'.
Time of India
4 days ago
- Business
- Time of India
US tariffs not to hit India's growth: S&P
US tariffs not to hit India's growth: S&P NEW DELHI: Trump tariffs will not have any impact on India's growth, as it is not a trade-oriented economy, and its sovereign ratings outlook will continue to remain positive, S&P Global Ratings director YeeFarn Phua said. In May last year, S&P had upgraded the outlook on India's sovereign rating of 'BBB-' to positive, citing robust economic growth. On Aug 6, US President Donald Trump announced an additional 25% tariff on all Indian imports, on top of an existing 25% duty, taking the total to 50% from Aug 27. YeeFarn said, "I don't think the tariffs imposed on India will have an impact in terms of economic growth, largely because India is not a very trade-oriented economy. And if you look at India's exposure to the US in terms of exports to GDP, it is just about 2%." Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
