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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.
