Growth story intact: FinMin tells Moody's

Written by ENS Economic Bureau | New Delhi | Updated: May 8 2013, 14:02pm hrs
MoodysRepresentatives from Moody?s have raised questions on the steps taken to check subsidy outgo. (Reuters)
While admitting to challenges ahead, the finance ministry on Tuesday tried to pitch Indias growth story as credible in a meeting with global rating agency Moodys.

"It is not as if the picture is fully rosy. All we have said is that we know there are problems but we have to take actions in a particular manner and the government is fully committed to take action so that the problems that we are seeing today are fully addressed, said Arvind Mayaram, secretary, department of economic affairs after the meeting.

While the finance ministry tried to project an improvement in inflation and the fiscal situation, representatives from Moodys are understood to have raised questions on the steps taken to check subsidy outgo and impact of the proposed right to food bill on the exchequer.

Mayaram said, We raised the same points but with additional numbers (on inflation and fiscal deficit). The numbers have improved since the last time we had met Moodys. So thats a good sign.

Moodys had last week said that Indias sovereign outlook is stable and does not warrant any action in the next 12-18 months. Its current sovereign rating is investment grade with a stable outlook.