India pitches for higher rating from S&P
New Delhi: India on Tuesday pitched for higher ratings from global agency Standard & Poor's on the back of good economic growth prospects, higher revenue generation and efforts to contain fiscal deficit.
"The meeting ended on a positive note. The finance ministry officials pressed that India is faring much better than the countries with BBB ranking," sources said after a two-hour long meeting of representatives of S&P with the Finance Ministry officials.
S&P which had last revised India's rating in 2007 had given a sovereign rating of 'BBB-/stable', which is the lowest investment grade rating. It indicates that the country has adequate capacity to repay debts but adverse economic conditions can have implications on its ability to meet financial commitments.
During the meeting, S&P representatives expressed concern `over high fiscal deficit. The ministry officials, however, are understood to have highlighted India's growth story and the Budget proposals to raise revenue and cut deficit.
India's fiscal deficit for 2012-13 has been pegged at 5.1 percent, down from 5.9 percent a year ago.
"The S&P discussed the Budget proposals, interest rate scenario, 7.6 percent economic growth projection for the current fiscal, agricultural growth and steps taken to cap subsidies at 2 percent of GDP," sources said.
The representatives of US-based rating agency will meet Reserve Bank officials tomorrow.
S&P, sources said, was looking at a broader picture and remained satisfied with the presentation made by the Ministry.
The government is aiming at a growth rate 7.6 percent in the current fiscal, up from 6.9 percent a year ago.