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Vansh Khandelwal

Full Stack Web Devel... • 2m

India’s low sovereign credit ratings—assigned by Moody’s, S&P and Fitch—raise borrowing costs because lower ratings make investors demand higher yields on government bonds, increasing interest expenses for government, businesses and consumers and risking a vicious cycle of rising debt costs. Despite strong fundamentals and no sovereign default, India’s ratings lag expectations, prompting government complaints of bias. Critics note Moody’s relies on five quantitative versus 13 qualitative indicators and Fitch lacks fixed criteria, making assessments subjective. Improving transparency, reassessing methodologies and sustained dialogue with agencies are needed to restore investor confidence and reduce debt costs.

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