Commodities & Energy

Reuters first to report India to cap coronavirus-related stimulus over ratings fears

Reuters first to report India to cap coronavirus-related stimulus over ratings fears

Reuters broke news that the Indian government is likely to cap its overall spending on coronavirus-related relief at around 4.5 trillion rupees ($60 billion) due to concerns that excess spending could trigger a sovereign rating downgrade. “We have to be cautious as downgrades have started happening for some countries and rating agencies treat developed nations and emerging markets very differently,” one senior government official told Reuters. In March, the government announced a 1.7 trillion rupee outlay that was directed at helping the poor via cash transfers and food grain distribution.