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India has made a strong case for a sovereign rating upgrade before international rating agency Fitch. Currently, India's sovereign rating is 'BBB-' with stable outlook. This is the last rating before junk grade.
Finance Ministry officials led by the Chief Economic Advisor Arvind Subramanian met with Fitch officials on Thursday. "We have a case for a rating upgrade," Subramanian told reporters after the meeting. He and officials explained the reasons for better growth prospects and fiscal consolidation.
Subramanian said the macro situation now is completely different. "Debt to GDP has come down dramatically. We are still growing below potential. We need to find space for public investment," he said while adding that inflation has come down, growth has picked up. "We are on the path of fiscal consolidation. The Budget paved the way for increased investment," he said.
Government listed four key factors which will help in achieving a growth projection between 8.1-8.5 per cent during fiscal 2015-16. These factors included lower inflation, lower interest rate, lower crude prices, and the cumulative effect of reform measures so far.
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