India may seek a ratings upgrade from Moody’s
Published On: Thursday, September 23, 2021 | By: Team KnowMyStock
Indian finance ministry officials plan to pitch for a sovereign rating upgrade from Moody’s Investors Service in the meeting with Moody's scheduled for Sept. 28, according sources. Finance officials plan to provide details on how India will meet its budget targets for the current fiscal year, which runs through March. Moody’s cut India’s sovereign rating to Baa3 in June 2020, the lowest investment grade, citing policy challenges in addressing a prolonged economic slowdown and its deteriorating fiscal position Neither the finance ministry nor Moody’s responded to requests for comment S&P Global Ratings in May said it sees no change in India’s sovereign rating for the next two years.
The rating agency believes that the second wave of infections hampered economic recovery and increased risks of longer-term scarring. In its August update to the 'Global Macro Outlook 2021-22', it retained India's growth forecast for the 2021 calendar year at 9.6% and 7% for 2022.
The Indian economy contracted 7.3% in 2020-21 fiscal. Though GDP growth was estimated to be in double digits in the current fiscal, a severe second wave led to various agencies cutting projections.
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