Govt Intensifies Engagement With Global Credit Rating Agencies: Finance Ministry

New Delhi, July 22 (KNN) The Government has intensified its engagement with international credit rating agencies through a structured and interactive process, aimed at presenting the country’s macroeconomic strengths and addressing rating concerns, Parliament was informed on Tuesday.

In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that the government consistently showcases its macroeconomic performance and policy measures to agencies such as Moody’s, S&P Global Ratings, Fitch, and Morningstar DBRS. 

These interactions are intended to communicate India’s economic outlook and clarify key policy directions.

Currently, India holds the lowest investment-grade rating from major global agencies. Moody’s has assigned a ‘Baa3’ rating with a stable outlook, while S&P Global Ratings and Fitch have rated India at ‘BBB-’, with a positive and stable outlook respectively. 

In a more optimistic move, Morningstar DBRS upgraded India’s rating to ‘BBB’ with a stable trend in May.

Chaudhary highlighted that the government has undertaken sustained efforts to strengthen India’s credit fundamentals. 

Key initiatives include maintaining robust macroeconomic stability, ensuring steady GDP growth, pursuing fiscal consolidation, preserving foreign exchange reserves, and building resilience in the banking sector.

He further noted that ongoing efforts in infrastructure development, digital transformation, financial sector reforms, ease of doing business, and employment and skill enhancement are crucial for long-term economic stability.

"During engagements, the government presents its perspective on the overall macroeconomic scenario and addresses the specific considerations of the agencies,” Chaudhary said. 

He added that rating agencies assess countries like India based on a range of quantitative and qualitative metrics, broadly grouped under five pillars: economic strength, fiscal strength and flexibility, monetary performance and resilience, external resilience, and institutional strength.

These efforts are part of the broader strategy to reinforce investor confidence, reduce borrowing costs, and enhance India's position in global financial markets.

(KNN Bureau)