India to pitch for a credit ratings upgrade by Moody’s

On Wednesday, the Finance Ministry will be pitching to upgrade the country’s rating with Moody’s buoyed by an increased speed of reforms including that of GST, a decline in inflation and an improvement in fiscal as well as current account deficit situation.

"Representatives from Moody's are scheduled to meEconomic Affairs Secretary and other finance ministry officials on September 21, the ministry will impress upon the rating agency about the government's resolve to contain fiscal deficit at 3.5 per cent of GDP in the current fiscal," a source told ET.

The passage of the long pending Goods and Services Tax (GST) in the Parliament last month will also be highlighted. Also the Parliament's approval for passage of the bankruptcy, Sarfaesi and DRT laws will be highlighted. It will also highlight the steps being taken to improve the ease for doing business, generating jobs and self- employment opportunities through programmes like Make in India, Start up India and Stand Up India. The Finance Ministry wants the rating agency to upgrade the country's rating, lifting its credit profile.

India’s rating outlook was changed from “stable” to “positive” last year by the Moody’s and the agency said that it could consider India for an upgrade in the next 12-18 months.

India on Moody’s rating stand on ‘Baa3’ which is the lowest investment grade, just above the junk status.
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