India pitches in for Moody’s rating upgrade
09/09/2014 12:13
Days after leading global rating agency Moody’s warned that a high fiscal deficit and elevated inflation were impairing India’s credit rating, officials from the Indian Finance Ministry have called on the rating agency to upgrade the country’s credit rating given the steps unveiled in the Union Budget 2014-15 to stem the fiscal shortfall and revive growth to higher levels.
"We presented our case. The growth is coming back. The budget has strong growth impulses and response of the economy is positive. They have concerns about fiscal deficit. We explained that we will be able to maintain target," Finance Secretary Arvind Mayaram told the PTI after meeting with the representatives of Moody's.
Mayaram cited the examples of the World Bank and the International Monetary Fund who expressed optimism over India’s growth prospects.
Mayaram reckons that growth revival; steps to rein in the fiscal deficit and effective inflation management present the case for a ratings upgrade.
Asia’s third biggest economy grew at the fastest pace in two and a half years as Gross Domestic Product (GDP) expanded by 5.7 per cent in Q1 FY 2014-15 from the same period a year ago, up from an annual 4.6 per cent expansion in Q4 FY 2013-14.
Moody’s which rates India at Baa3, with a stable outlook had said the rating “reflects high domestic savings and adequate foreign exchange reserves and the challenges posed by large fiscal deficits, recurrent inflation and weak infrastructure".
09/09/2014 12:13
Days after leading global rating agency Moody’s warned that a high fiscal deficit and elevated inflation were impairing India’s credit rating, officials from the Indian Finance Ministry have called on the rating agency to upgrade the country’s credit rating given the steps unveiled in the Union Budget 2014-15 to stem the fiscal shortfall and revive growth to higher levels.
"We presented our case. The growth is coming back. The budget has strong growth impulses and response of the economy is positive. They have concerns about fiscal deficit. We explained that we will be able to maintain target," Finance Secretary Arvind Mayaram told the PTI after meeting with the representatives of Moody's.
Mayaram cited the examples of the World Bank and the International Monetary Fund who expressed optimism over India’s growth prospects.
Mayaram reckons that growth revival; steps to rein in the fiscal deficit and effective inflation management present the case for a ratings upgrade.
Asia’s third biggest economy grew at the fastest pace in two and a half years as Gross Domestic Product (GDP) expanded by 5.7 per cent in Q1 FY 2014-15 from the same period a year ago, up from an annual 4.6 per cent expansion in Q4 FY 2013-14.
Moody’s which rates India at Baa3, with a stable outlook had said the rating “reflects high domestic savings and adequate foreign exchange reserves and the challenges posed by large fiscal deficits, recurrent inflation and weak infrastructure".
