Finance Minister Nirmala Sitharaman
India has strongly advocated to increase its sovereign rating from American agency Moody’s today i.e. on Friday. Along with this, India raised questions on the parameters on the basis of which the agency gives credit rating to different countries. According to sources, before the annual review of the sovereign rating, representatives of credit rating agency Moody’s Investors Service met the officials of the Government of India. During this, the officials highlighted the reforms and strong fundamentals of the Indian economy.
low interest on loan
If India’s rating improves, it would mean that the country is less risky, so it will have to pay less interest on borrowings. Moody’s has acknowledged the positivity of the Indian economy, said an official after a meeting with agency representatives.
moody’s
We are hopeful of a rating upgrade from Moody’s. Moody’s Investors Service has given India a Baa3 sovereign credit rating with a stable outlook. ‘BAA3’ is the lowest rating in the investible category.
GDP
Apart from the ongoing economic reforms in India, government officials also mentioned the development of infrastructure and foreign exchange reserves of US $ 600 billion in the meeting. Along with this, the officials also questioned Moody’s on its rating parameters.
Indian Economy
Apart from all the ministries related to the economy, officials of NITI Aayog also participated in this meeting. Last month, two other rating agencies Fitch and S&P had kept India’s rating unchanged at ‘BBB-‘ with a stable outlook.
debt burden will come down
Rating agency Moody’s Investors Service estimates that India’s debt burden will come down. Moody’s has said in one of its reports that it is necessary for India’s fiscal strength to be cheap.
GDP Growth
According to the report, the rapid growth in India’s gross domestic product (GDP) is a key point in the estimates of the decline in the country’s debt burden. The GDP growth rate at current prices is estimated to be 11 per cent.
Finance Minister Nirmala Sitharaman
Let us tell you that the general government debt in India is at a relatively high level. For the financial year 2022-23, it has been around 81.8 per cent of GDP, while its average for the BAA-rating is around 56 per cent.
economic growth
Moody’s has given India a credit rating of ‘Baa3’ with a stable outlook. Baa3 is the lowest investment grade. Representatives of Moody’s are also going to meet government officials on Friday on the issue of rating improvement. This meeting is being seen as an initiative to improve the ratings.
