The government has disappointed with S&P’s decision for not upgrading India’s sovereign rating despite a slew of reforms. S&P Global Ratings in its latest report ruled out an upgrade for India for next 2 years, while retained rating at lowest investment grade ‘BBB-’ with stable outlook. According to economic affairs secretary Shaktikanta Das, global rating agencies’ decision will not discourage the government and they will stick to the path of economic reforms and policies. However, Shaktikanta Das believes that the rating agency’s decision not to upgrade calls for ‘introspection’ on the part of the rating agencies.
The government has already took various steps in the past two years, including building strong external position, controlling inflation and structural reforms such as the goods and services tax and bankruptcy code. According to Das, global investors consider India as highly 'under-rated'. He further added that “If you compare the various factors which the report itself talk about, is there any other economy that equals this? So with all this, if there is no improvement, I think it’s a matter for the rating agency itself to put a question to itself and perhaps undertake a kind of introspection”.