The Finance Ministry will pitch for the country’s rating upgrade with global agency Moody’s on Wednesday, highlighting increased pace of reforms including the GST, declining inflation and improvement in fiscal as well as current account deficit situation.
“Representatives from Moody’s are scheduled to meet Economic Affairs Secretary and other finance ministry officials on September 21,” a source said.
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, the source said.
It will also highlight the passage in Parliament last month of the long pending Goods and Services Tax (GST) — billed as the biggest tax reform since Independence.
Armed with relaxation of thresholds for FDI and inflation targeting monetary policy, the finance ministry wants the US-based agency to upgrade the country’s rating, lifting its credit profile.
The government in the past 3-4 months has also secured Parliament’s approval for passage of the bankruptcy, Sarfaesi and DRT laws, besides the long pending GST.
Last year in April, Moody’s had changed India’s rating outlook to ‘positive’ from ‘stable’ citing reform momentum and said it could consider India for an upgrade in next 12-18 months.
India’s sovereign rating by Moody’s stands at ‘Baa3’, the lowest investment grade — just a notch above ‘junk’ status.
During the meeting, the ministry would also mention the recent initiatives with regard to subsidies reduction programme and the commitment of the government to ensure a predictable tax regime.
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.