BackIndia hopeful about sovereign rating upgrade, CEA meets Moody's officials: Report
India's Chief Economic Adviser held a discussion with Moody's on the agency's approach and rating parameters. Currently, Moody's rating for India is in the lowest investment grade of 'Baa3' with a ‘stable’ outlook.
PremiumThe Chief Economic Adviser (CEA) V Anantha Nageswaran on Friday presented India's point of view to Moody's senior executives in a meeting held in New Delhi.
Government sources told that the CEA is hopeful for a ratings upgrade from Moody's. The CEA held discussions Moody's on how can countries like Indonesia have a better rating than India, reported CNBC-TV18.
As per the report, the discussions with Moody's were favourable. Also, the sources told Moody's acknowledged positives of the Indian economy.
Currently, Moody's rating for India is in the lowest lowest investment grade of "Baa3" with a "stable" outlook. This is similar to those assigned by other rating agencies such as S&P and Fitch at 'BBB-'. Also, DBRS's credit rating for India is BBB (low) with similar outlook.
As per Trading Economics, in general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of India thus having a big impact on the country's borrowing costs.
India's economy recorded significant growth and merrier-than-estimates for the quarter ending March 31, 2023, period. In Q4FY23, GDP growth is at 6.1% compared to the 4.4% growth rate witnessed in Q3.
Overall, the growth in the FY23 fiscal is better than expected at 7.2%. However, the FY23 growth has slowed down from 9.5% growth in FY22.
On May 31st, following the GDP data, Nageswaran had said, "we are very pleased to have been able to present a story of sustained economic momentum combined with macroeconomic, financial, and fiscal stability, and we look forward to another year of solid economic performance by India."
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