Highlighting global ratings agencies for failing to upgrade India's sovereign rating despite significant improvement in macroeconomic parameters, Economic Affairs Secretary Shaktikanta Das has said the agencies are out of touch with India’s reality and are missing out on something which only they can best explain. He added that last upgrade India got was several years ago. He noted that Fitch upgraded India's sovereign rating to BBB in 2006, while S&P in 2007.
Das has said that list out the reform measures which India has undertaken in the last two-and-a-half years, and compare them with the track record of reforms in any other country. He said ‘Look at our GDP, compare with other countries’ GDP. Look at our macroeconomic numbers, inflation, current account deficit, compare with other countries. Now I really do not understand, I think rating companies are missing out on something which only they can explain’.
He said that GST is now happening still no weightage has been given for introduction of GST. Also, there is no resolution mechanism for dealing with stressed assets. Additionally, the government has enacted Insolvency and Bankruptcy Law, but no weightage has been given to that. He also said that the government has passed and implemented Aadhaar legislation which is unique in the world, yet no recognition came India's way. He said 'I think it should be a moment for retrospection. It should be moment of retrospection for rating companies.'