India pitches for rating upgrade; says growth story credible

New Delhi, May 7 (IANS) India's growth story is credible and the government is making serious efforts to control subsidy and address other macro-economic problems, the finance ministry told rating agency Moody's Tuesday, making a strong pitch for sovereign ratings upgrade.

Representatives of Moody's met finance ministry officials at North Block here to access India's economic situation.

Talking to reporters after the meeting, Economic Affairs Secretary Arvind Mayaram said the rating agency wanted to learn about the government's measures to control subsidy and fiscal deficit.

He said most of the analysts raise concern over whether there will be slippage on subsidy and the budgetary numbers were credible.

"The numbers have been very carefully done in the budget. We have checked and double checked it. Therefore, there is no question of numbers not being accurate or credible," Mayaram said.

"We have a credible story that we have told them and they have appreciated what we have said. Now rest is up to them," he said.

Mayaram admitted that India's macro-economic pictures were not "fully rosy" but the government was taking action to improve the situation.

"We know there are problems but we have to take actions in a particular manner and the government is fully committed to take action so that the problem that we are seeing today are fully addressed," he said.

The finance ministry had put forward similar arguments and made pitch for ratings upgrade during the meetings with the representatives of Standard & Poor's and Fitch recently.

Moody's last week said India's sovereign outlook is stable and does not warrant any action in the next 12-18 months. Moody's has assigned India the sovereign credit rating of 'Baa3', with stable outlook. This is the lowest investment grade rating.

Standard & Poor's and Fitch have also assigned their lowest investment grade sovereign ratings to India, but with negative outlook. These two agencies last year cut their outlook on India to negative, warning of a possible downgrade, largely due to slowdown in growth, widening deficit and policy inaction.

Any downgrade would take India's sovereign ratings to "junk" status.