Modi government makes fresh Fitch pitch for rating
upgrade
India's government has reiterated its pitch for a
sovereign rating upgrade to Fitch, citing strong
economic fundamentals, a finance ministry official said
after a meeting with the global rating agency on
Wednesday.
Fitch rates India as BBB-, the lowest investment
grade sovereign rating, with a stable outlook.The
government has assured Fitch that it will bring down the
fiscal deficit to 3 percent of gross domestic product
(GDP) by 2020-21, the official told reporters, adding it
is "conscious" of the impact of a high fiscal deficit on
inflation.
The government led by Prime Minister Narendra Modi
diverted from a fiscal consolidation roadmap when it
announced last month a fiscal deficit target of 3.3
percent for the year 2018/19 starting in April, higher
than the 3.0 percent projected earlier. |