InvestorQ : Is it true that S&P is more positive on India compared to China?
swati Bakhda made post

Is it true that S&P is more positive on India compared to China?

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Sam Eswaran answered.
3 months ago
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That may not exactly be the case, but S&P has surely shown more positivity on the Indian economy than the Chinese economy. In fact, S&P has hinted at a likely rebound in the Indian economy with GDP likely to scale 9.5% in FY22. However, it has downsized the potential GDP growth for China for calendar 2021 from 8.30% to 8%. This is largely on the lag effect of the Evergrande crisis as well as the acute power shortage that China is experiencing.

However, S&P has also highlighted some risk factors for India. It has pointed out that if the Fed opts for faster than expected tapering, it could stem capital flow into India. That could be a huge systemic risk for Indian markets. However, S&P has appreciated the vaccination drive undertaken by India and its implementation. S&P has also added that the recent Chinese clampdown on IT, digital and online education companies is a risk for China.

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