Finance ministry officials on Friday presented its assessment of the state of the economy and made a case for a better sovereign rating citing multiple economic indicators in the positive direction, at a meeting with officials from ratings agency Moody’s Investors Service Inc., said a person informed about the development.
A second person, who is also informed about the ministry’s discussions with Moody’s, said that these meeting happen every year and are part of a series of interactions taking place over the course of the year.
This meeting, the second person said, is not a forum to question the rating methodology or make a cross country comparison, but is meant for explaining the governments assessment of the economy to help credit agencies make their assessments. The meeting was conducted in the most cordial atmosphere, the person said.
News agency PTI reported that during the meeting, Moody’s representatives discussed the government’s disinvestment roadmap and officials highlighted that disinvestment should be seen from the prism of reform and not just revenue generation exercise. Moody’s Investor Service has a assigned India a sovereign rating of Baa3 with a stable outlook.
In FY23, India’s fiscal deficit stood at 6.4% and in the current year, it is budgeted at 5.9 % of GDPN thing of the past as private consumption has caught up with the pre-pandemic growth trend.
The official estimate of 7.2% economic growth rate for FY23 reported last month is likely to be revised up in the final assessment, Chief economic advisor V Anantha Nageswaran said last week.
Emails sent to Moody’s Investors Service and to finance ministry on Friday remained unanswered at the time of publishing.
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Updated: 16 Jun 2023, 08:55 PM IST
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