New Delhi. Japan's credit rating agency JCR on Wednesday raised India's rating by one notch to 'A-' with a stable outlook. The agency cited India's 'robust' economic growth and improvement in financial condition as the main reasons behind increasing the rating.
JCR said the Indian economy, with a population of over 140 crore and a GDP of $3.9 trillion at current prices, is expected to maintain a high growth rate of over six per cent in the current financial year. The Indian economy has maintained high growth rates in recent years, supported by strong private consumption and investment.
15th Finance Commission Chairman NK Singh said that after more than 35 years, India has again got 'A' rating. It is a recognition of India's rapid economic growth, structural reforms and the strength of the Centre-State partnership. Earlier, India was given 'A' category rating by Moody's in 1988. However, this rating was lost during the balance of payments crisis of 1990–91.
What benefit will you get?
The common man can benefit not directly but gradually through the economy. With better ratings, loans from abroad will become cheaper for companies. This is likely to have a positive impact on the interest rates on home loans, car loans and business loans in future. Foreign investment will also be attracted. Due to this, employment opportunities can be created when factories and new businesses expand.
Trade will increase with Belgium
Prime Minister Narendra Modi will hold bilateral talks with Belgian Prime Minister Bert de Wever, who is visiting India, on Thursday. During this period, there will be special emphasis on increasing trade and investment. Many agreements are also expected in the areas of energy, defence, climate change, technology etc. As an EU country, Belgium is important for investment and trade in India.
The visit of the Belgian Prime Minister to India is taking place after a gap of two decades. This is expected to usher in a new era of relations between the two countries. Belgium is among the European countries which established diplomatic relations with India soon after its independence. Prime Minister Modi had visited Belgium in 2016.
Along with the Belgian Prime Minister, the Belgian Defense and Foreign Trade Ministers have also come to India. There is a possibility that there may be some agreements regarding co-production between defense industries. At the same time, last year more than 40 agreements were signed in various fields.
18 billion dollar business
The current trade between India and Belgium is $13 billion annually. It is expected to increase after the recent free trade agreement with the European Union. Not only this, Belgium is also an important source of foreign investment in India. According to Commerce Ministry data, investment worth $4.2 billion from Belgium came to India during 2000-2025. Now there is a possibility of increase in it.