Clipped from: https://www.deccanherald.com/business/chief-economic-advisor-office-pitches-for-indias-sovereign-rating-upgrade-2821795
Chief Economic Advisor to the Government of India V Anantha Nageswaran.
Credit: PTI Photo
New Delhi: Sovereign credit rating methodology used by top global agencies Fitch, Moody’s, and Standard & Poor’s are opaque and fail to accurately depict the underlying economic fundamentals of the Indian economy, India’s Chief Economic Adviser’s office has said, making a strong pitch for rating upgrade.
In a report released on Thursday, the CEA’s office noted that India’s sovereign ratings remained static at BBB- during the last 15 years, despite it climbing the ladders from the 12th largest economy in the world in 2008 to the 5th largest in 2023, with the second-highest growth rate recorded during the period among all the comparator economies.
BBB- rating by Fitch and Standard & Poor’s is considered the lowest investment grade by market participants. The equivalent rating by Moody’s is Baa3.
In preface to a report titled ‘Re-examining Narratives – a Collection of Essays’ Chief Economic Adviser V Anantha Nageswaran and senior adviser Rajiv Mishra said that “these ratings are important as they are binding constraints for developing economies, hindering their ability to attract necessary funds”.
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