India Sovereign Rating: India raised questions about the methods of rating the global rating agency Moody’s Investors Service. Finance Ministry officials chaired by Chief Economic Advisor V Ananth Nageswaran held an important meeting with Moody’s today in Delhi to raise India’s rating, in which Indian officials have strongly put forward their demand for rating upgrade.
According to sources, Indian officials are hopeful that Moody’s Investors Service will soon upgrade India’s rating. In the meeting, a picture of a robust growth outlook was presented by Indian officials with a GDP figure of 7.2 per cent for 2022-23. Along with the reduction in inflation, there has been a demand to upgrade the rating by citing other better macro-economic factors.
On behalf of the Ministry of Finance, discussions have been held with Moody’s regarding the borrowing plan of the government, the target of disinvestment and the budget of the states. Currently, Moody’s has given India a Baa3 rating with Stable Outlook, which is the lowest investment grade. The Finance Ministry has also met with two other rating agencies of the world, Fitch and S&P. Both have retained the BBB- rating with a stable outlook for India during the May review.
Earlier on Thursday, in one of its reports, Moody’s said that due to the rapid development of the Indian economy, its debt burden is expected to come down. Moody’s said that it is necessary to reduce debt for India’s fiscal strength and improvement in credit profile. Moody’s has predicted that the debt burden on India will come down.
Foreign investment coming into that country depends on the rating of any country. Foreign investors increase investment by seeing the same. Also, the interest rates of loan taken from abroad depend on it.
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