India pitches for rating upgrade with Fitch

NEW DELHI: India has pitched for a ratings upgrade with global agency Fitch Ratings, citing improvement in macroeconomic conditions and the government's commitment to fiscal consolidation.

"We highlighted the overall economic situation and in all the major sectors the challenges which the economy faces and what is the outlook for next year," economic affairs secretary Shaktikanta Das tsaid after a twohour meeting with the representatives of the agency.

Fitch Ratings had in December affirmed India's BBB- rating with a stable outlook, and has forecast 8 per cent growth for 2016-17. BBB- is the lowest investment grade and just a notch above junk grading. Chief economic adviser Arvind Subramanian had earlier said the government has pitched for a rating upgrade with Fitch, stating finance ministry is committed to fiscal consolidation path.

Fitch Ratings primary analyst Thomas Rookmaaker said, "We are now in the process of our review. It is going to take some time."

The economy expanded 7.6 per cent in 2015-16 and is expected to grow by 7 per cent-7.75 per cent in the current fiscal.

During the meeting, finance ministry officials also highlighted the reform initiatives, which include new bankruptcy code, creation of interest rate setting monetary policy committee, and amendments to the Debt Recovery Tribunal (DRT) and Sarfesi Acts.

Also, in order to reset the fiscal goal post in the long run, the government has set up a committee to review the long-term fiscal target.

Ministry officials also reiterated the government's commitment to introduce Goods and Services Tax (GST) at the earliest.