India's growth story not recognised by global rating agencies: Piyush Goyal

New Delhi: Commerce and industry minister Piyush Goyal on Friday questioned the credibility of global credit rating agencies, saying their assessments had failed to adequately reflect India's growth trajectory and economic fundamentals.

He expressed surprise that agencies such as S&P, Moody's and Fitch had "not recognised the India growth story" or its "strong fundamentals and sovereign capabilities" in a fair manner.

"So far, we only had Fitch, Moody's and Standard & Poor's. And I can say it on record, they have been unfair to India," Goyal said while addressing a business plenary session in London. "They have not recognised the India growth story. The strong India fundamentals. And the sovereign capabilities, the Indian capability and future, and captured it as much as a rating agency should have. I will not cast any motives to it. But I do express surprise."


He said several economies weaker than India had received higher sovereign ratings "for reasons best known", despite having limited growth prospects.

Goyal contrasted their assessments with those of domestic analytics firm CareEdge, describing its ratings as more objective. He said sovereign ratings across 22 countries had recently been revised or aligned in ways that converged with CareEdge's findings, which he said reflected improving objectivity in credit assessments.

He also called for an open debate involving global banks and rating agencies, including HSBC, S&P, Moody's and Fitch, to test assumptions underlying India's sovereign ratings. "I almost believe that we must support the Indian effort to bring equitability to ratings. And we have HSBC Bank here. I would urge you to seriously help us in understanding whether we are on the right track. Get other banks... authorities... Standard & Poor's, Moody's and Fitch to come and debate with you," he said.

Goyal urged Indian businesses to move beyond incremental growth targets and focus on expanding exports, improving manufacturing quality, mechanisation, branding and packaging to increase India's share in markets such as the UK.

Bilateral meets

During his visit to the UK, Goyal also met Peter Kyle, the UK's secretary of state for business and trade. "Meaningful discussions with my friend and counterpart Mr. @PeterKyle in London as we explored new opportunities to deepen India-UK economic and trade cooperation," Goyal said in a social media post. He said the discussions reflected the warmth, trust and forward-looking vision underpinning bilateral ties.

"With the India-UK Comprehensive Economic and Trade Agreement (CETA) and Double Contribution Convention (DCC) coming into effect on July 15, we remain committed to fostering an ecosystem that promotes innovation, investment and holistic growth for both nations," Goyal said.