Finance Ministry seeks rating upgrade
Modi government is looking for an upgrade of the Indian economy
New Delhi: Modi Sarkar is looking for an upgrade of the Indian economy. Finance ministry officials will be meeting various rating officials seeking an upgrade of India’s sovereign rating. India has already set on a tight fiscal roadmap to improve its rating.
Finance ministry official are planned to meet Standard & Poor’s (S&P) representatives and The Japan Credit Rating Agency on August 12 and August 28. India will highlight steps taken to control the FD, CAD and reform agenda of the government to build a case for an upgrade in the ratings. Fitch and Moody rating agencies are expected to meet finance ministry official between September-October.
India has set an ambitious fiscal deficit target of 4.1 for the current fiscal. As per the fiscal consolidation roadmap, fiscal deficit will be further reduced to 3.6 per cent for 2015-16 and 3 per cent for 2016-17.
Reacting to budget proposals, S&P had said that the commitment of the new Indian government to maintain the trend of fiscal consolidation would benefit the sovereign’s credit fundamentals. S&P currently rates India as ‘BBB-’, the lowest in the investment grade.