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04-11-2012, 11:34 AM #1
India pitches for higher rating from S&P
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 had last revised India's rating in 2007 and 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 per cent, down from 5.9 per cent a year ago.
"The S&P discussed the Budget proposals , interest rate scenario, 7.6 per cent economic growth projection for the current fiscal, agricultural growth and steps taken to cap subsidies at 2 per cent of GDP," sources said.
The representatives of US-based rating agency will meet Reserve Bank officials on Wednesday.
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 per cent in the current fiscal , up from 6.9 per cent a year ago.