S&P Says India Can Absorb Higher Current-Account Deficit as Oil Surge Stokes Outflow Fears
Updated
Updated · Bloomberg · May 13
S&P Says India Can Absorb Higher Current-Account Deficit as Oil Surge Stokes Outflow Fears
2 articles · Updated · Bloomberg · May 13
India has enough buffers to withstand a wider current-account deficit even as oil prices climb, S&P Global Ratings said, arguing the economy is holding up better than headline indicators imply.
S&P said fears of foreign capital outflows are overstated, suggesting external financing risks are less severe than markets may assume under current global financial pressure.
The assessment points to resilience in India's external position at a time when higher energy import costs are threatening to widen deficits across oil-importing economies.
Is India's domestic market a real buffer or a bubble about to burst under prolonged global energy shocks?
Can India defend its currency and control inflation without sacrificing its world-leading economic growth?
Is India undermining its own energy security by expanding fossil fuel infrastructure alongside its push for renewables?