India’s credit ratings intact, unperturbed by foreign outflows

FXStreet (Mumbai) - India's credit rating likely won't be impacted by recent strong foreign investor sales of shares and bonds due to tax concerns and the uncertainty over the country's tax regime, Moody's and Fitch said on Friday.

While speaking to legislators in parliament, India's Finance Minister Arun Jaitley confirmed that the government was committed to "certainty of taxation, avoidance of retroactive taxation and enabling both domestic and foreign investment."

"We will ensure that these principles are adhered to in letter and spirit," Jaitley added.

Fitch told Reuters in an emailed statement emailed on Friday,

"India's external balances are strong relative to peers on some accounts, and can withstand the current outflows, for instance, due to the high level of foreign-exchange reserves."