Rating support likely for India: S&P

New Delhi: India can get ‘rating support’ over time if it utilises the highest-ever dividend of over Rs2 lakh crore received from the Reserve Bank of India (RBI) to reduce fiscal deficit, said an S&P Global Rating analyst on Thursday.

The RBI board has decided to pay a record Rs2.1 lakh crore dividend to the government for the fiscal ended March 2024, more than double of what was budgeted expectation of Rs1.02 lakh crore. “The additional dividends from the RBI are around 0.35 per cent of GDP. Whether it would support the narrowing of the fiscal deficit in fiscal 2024-25 would really depend on the final budget that would be passed after the June election results,”said S&P Global Ratings Analyst YeeFarnPhua.