NEW DELHI, March 13 (Reuters) – India is searching for an improve to its sovereign credit standing, presently on the lowest-possible funding grade, because the Asian nation believes its financial metrics have improved significantly because the pandemic, a senior authorities official mentioned on Monday.

The nation’s federal finance ministry met representatives from the highest three ranking companies–Fitch Ratings, Moody’s Investors Service and S&P Global Ratings–after the federal government offered its annual price range on Feb. 1, the official mentioned.

“Our pitch is that our economic performance calls for an upgrade,” the official mentioned, requesting anonymity because the discussions are non-public.

S&P and Fitch price India ‘BBB-‘ and Moody’s ‘Baa3’, all indicative of the lowest-possible funding grade, however with a steady outlook. These rankings are used to guage a rustic’s creditworthiness, typically impacting its borrowing prices.

They keep in mind parameters akin to financial development price, inflation, common authorities debt and short-term exterior debt as a proportion of GDP, and political stability, amongst others.

The Indian authorities has shared its fiscal consolidation plan with the three companies, which they’ve discovered to be passable, the official mentioned.

The finance ministry, Fitch, Moody’s and S&P Global didn’t instantly reply to a Reuters’ request for remark.

India goals to chop its fiscal deficit to five.9% of GDP subsequent fiscal 12 months, from the 6.4% goal for the present 12 months that ends March 31, and to further reduce that to 4.5% within the subsequent three years.

India’s Economic Survey has forecast development of 6% to six.8% for 2023/24, which might make it one of many world’s fastest-growing main economies.

Reporting by Shivangi Acharya; Editing by Savio D’Souza

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