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India's top officials have pitched for sovereign rating upgrade from the current "negative" outlook ahead of rating agency Moody's annual sovereign rating action, news agency PTI reported.

The meeting, according to the agency sources, was attended by top finance ministry and DEA officials including Chief Economic Advisor K V Subramanian and representatives from Moody's.

The officials, during the meeting discussed India's economic growth prospects. Meanwhile, S&P Global Ratings in May said it sees no change in India’s sovereign rating for the next two years.

Moody's Investors Service had last year downgraded India's sovereign rating to 'Baa3' from 'Baa2', saying there will be challenges in the implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.

The rating agency, along with its peers, has been criticised by government agencies who accuse them of holding biases towards emerging market economies like India, and deliberately assign lower credit ratings despite a superior record.

During Tuesday's meeting, FinMin officials highlighted the upward trajectory of GDP growth seen in the June 2021 quarter and also the fiscal deficit and borrowing numbers.

The Centre's fiscal deficit in the April-July 2021 period came in at only 21.3 per cent of full-year budget estimate (BE), mainly on account of curbs on expenditure and a rise in tax and non-tax revenue collection. In the same period last fiscal, the deficit was 103 per cent of the annual target.

In line with its Budget estimates, the Centre has announced it would borrow 5.03 lakh crore in the October-March period. The government had pegged its gross borrowing target for current fiscal at 12.5 lakh crore in the 2021-22 Budget.

The Indian economy contracted 7.3 per cent in the 2020-21 fiscal. In the April-June quarter of current fiscal, the economy grew 20.1 per cent.

Moody's has projected a 9.3 per cent growth in the current fiscal ending March 2022. For the calendar year 2021, Moody's has cut growth estimate sharply to 9.6 per cent.

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