India has pitched for a ratings upgrade from the global rating agency Fitch on the back of improved prospects of growth due to recent reform measures as well as lower oil prices. The Finance Ministry officials in their meeting with Fitch representatives said that country’s fiscal consolidation programme is on track and also highlighted various initiatives announced in the Budget 2015-16, which are expected to boost investment and growth. The team also reiterated the Centre’s commitment to contain the fiscal deficit within the Budget estimate and also check the current account deficit (CAD) within manageable levels.
Although, all the global rating agencies Fitch, S&P and Moody's have assigned lowest investment grade rating to India, Fitch had praised the government's continued focus on implementation of structural reforms after the first full year budget was presented by the new government. Chief Economic Advisor Arvind Subramanian after chairing a meeting with Fitch officials said that India is on the path of fiscal consolidation and Budget has paved the way for increased investment.
In their meeting, the senior Finance Ministry officials also highlighted the declining inflation as a big positive for the economy. The current rating for India is ‘BBB (minus)’ with a stable outlook, which is the last investment grade. Fitch is expected to come out with a detailed report on India in a few days.