HomeBreaking NewsIndia's strong corporate debt profile is key to macroeconomic stability

India’s strong corporate debt profile is key to macroeconomic stability

 The strong debt profile of Indian companies will be a major factor in maintaining the Asian country’s macroeconomic stability, the country’s finance ministry said in a monthly report on Monday.

“The tightening of financial conditions by central banks to tame inflation has raised concerns about worsening corporate debt vulnerabilities, with businesses already highly leveraged,” the ministry said, adding that such concerns are limited for India. Increases in interest rates by central banks typically affect a company’s ability to repay debt, raising refinancing costs and putting more corporate bonds at risk of default.

As global commodity prices ease, imports of lower-value goods will further curb India’s current account deficit (CAD), which is expected to be lower than year-to-date projections, according to the report.

Growth in services exports and the recent decline in consumption-intensive demand for imports will also help lower India’s CAD in FY23 and FY24 against estimates, the finance ministry added, giving the rupee a buffer in uncertain times. India’s exports of goods and services rose over 16% to $702.88 billion in the April-February period from a year earlier, despite a weakening global economy.

Read Now :<strong>Indian shares fall as banking worries weigh on sentiment, Nifty falls</strong>

[responsivevoice_button buttontext="Listen This Post" voice="Hindi Female"]


Please enter your comment!
Please enter your name here


Trending News

Study Links UFO Sightings to Environmental Factors

Unexplained Aerial Phenomena (UAP), commonly known as UFOs, have intrigued and puzzled sky watchers for decades. While previous investigations...

Navigating the Global Crisis of Alzheimer’s Disease: Unraveling Complexities and Seeking Solutions

Alzheimer's disease, a relentless neurological condition, poses an escalating global challenge, with an ever-expanding number of individuals affected. Currently,...

Reproductive Marvels of the Giant Antarctic Sea Spider: Unveiling a Mysterious Strategy in the Icy Waters of Antarctica

In the icy waters of Antarctica lurks an entire mysterious ecosystem. There, scuttling across the seafloor on spindly little...

China Announces Territorial Sea Baseline in Beibu Gulf, Advancing Boundary Clarification

China has taken a significant step in clarifying its maritime boundaries by announcing the baseline of the northern part...