A media enthusiast, Devyani believes in learning on the job and there is nothing off limits when it comes to work. Writing is her passion and she is always ready for a debate as well.
India will be among the large emerging market sovereigns to have the highest debt burden by 2021, according to the Moody's Investors Service.
The global coronavirus pandemic that has deteriorated the growth and hit the fiscal dynamics hard, leaving many emerging market sovereigns with debt burdens for the coming years.
"We expect government debt in the large emerging market sovereigns to rise by almost 10 percentage points of GDP on average by the end of 2021 from 2019 levels, driven primarily by wider primary deficits, although some are likely to see higher interest payments contributing to higher debt, Moody's statement as quoted by Outlook.
India is among the countries that will see a rise in debt burdens. Along with this, fiscal challenges pose a great threat as these nations face risks of economic and revenue downfall.
"Fragile financial systems and/or contingent liabilities compound this risk for India, Mexico, South Africa and Turkey," the statement read.
It further said that India not only is dealing with a weak financial system among banks and non-bank companies, it also raises huge liability risk, as the system continues to suffer from weak asset quality and low loss-coverage. State banks are more prone to these risks, accounting for 70 per cent of total banking system assets, the US-based rating agency said.
Thank you for subscribing.
We have sent you a confirmation email.