New Delhi: Enthused by upgrade of India's credit outlook to stable from negative by global rating agency Fitch, Plan Panel Deputy Chairman Montek Ahluwalia on Wednesday said it reflects strengthening of basic fundamentals of economy and hoped further improvement in coming months.
"We have been saying that basic fundamentals have improved and to that extend, the rating agency's shift in the outlook reflects that. I would like to believe that in the coming months you see a significant improvement in the performance and that should ultimately be reflected in the grading," Ahluwalia told reporters here.
Taking note of the government's efforts to contain fiscal deficit, Fitch Ratings today revised India's Outlook to Stable from Negative and affirmed 'BBB-' rating.
"The revision of the Outlook to Stable reflects the measures taken by the government to contain the budget deficit, including the commitments made in the FY14 budget, as well as some, albeit limited, progress in addressing some of the structural impediments to investment and economic growth," the agency said in a statement.
Fitch further said it expects the economy to recover after real GDP grew just 5 per cent in 2012-13 versus 6.2 percent in the year ago period.
"I have seen the report. They have upgraded (India's rating) from negative to stable. I think that is good development. It reflects that the economy look better than it did four or five months ago," Ahluwalia said.
"We have been saying that fundamentals are little better and I am glad that they (Fitch) have reflected that change in the outlook," he added.
First Published: Wednesday, June 12, 2013, 20:19