Centre pings rating agencies on economy in upgrade push: 

Centre pings rating agencies on economy in upgrade push: 

Context

• The finance ministry has begun interacting with global rating agencies through teleconferences and e-mails on a more regular basis to give clarifications and updates regarding the economy.
• This is done so to convey India’s pitch for a sovereign rating upgrade better.

India on FDI

• India has done commendably well on attracting foreign direct investment (FDI).
• But for some reason, its sovereign credit rating has not improved owing to unfavourable debt and deficit indicators.
• The information was provided by the Department of Industrial Policy and Promotion (DIPP) to the Parliament’s Standing Committee on Commerce.

Committee’s statement

• The committee had asked the government to explain the rationale behind rating agencies flagging ‘low private investments’ as a constraint towards raising the country’s rating and whether high FDI flows are not sufficient to improve the country’s business outlook.
• The government also informed the committee that it had taken several steps to improve India’s sovereign credit rating, including introduction of a structural interaction process with rating agencies.