Moody's Upgrade: Government To Pitch For Reforming Model

BENGALURU: The reform records of the Indian government would be shown to the finance ministry to Govt to pitch for Moody’s upgrade. The sovereign ratings of India will be up for a test when Moody's Investor Services come calling this week.

There will be interactions this week with the finance ministry’s senior officials with a team from Moody's Investor Services. This is an exercise to determine the country's economic fundamentals and strength, and what all progress has the country’s system made on the reforms being passed.

"There have been so many reforms which the government has undertaken. The biggest of them is the movement on the Goods and Services Tax (GST)," an anonymous source told The Times Of India. "We will push for an upgrade. We are the fastest growing economy in the world and our record on reforms has been impeccable," added the source.

A Baa3 rating has been employed by Moody which is said to have a positive outlook as reported by TOI. Fund flows would be benefited by any upgrade that is made by the suggestion of this committee. The country's financial strength would also be assured as this upgrade will mean the inflow of investors. According to the officials, a series of reforms has been undertaken by the government which includes the Insolvency and Bankruptcy code. The officials also told that this shows the commitment of the government to move ahead on crucial reforms, as efforts are being made to ensure that the GST is implemented by April 1, 2017. There have been many administrative decisions which will go a long way in ensuring faster decision making. There have been many far reaching governance reforms," the finance ministry official said.

The rural economy and overall growth will be further boosted by the robust monsoon rains, while it is expected that the growth will be around 7.6-8 percent.

It is also expected that the pending reform issues as well as drive home the country's attractiveness as an investment destination will be discussed later in the week by the finance ministry officials with a selected group of FIIs. FIIs' views on the next year's budget will also be heard to by the Officials. The budget is due to be presented in early February instead of the last day of February. This has been done to ensure that spending on projects are kicked off at the right time, and are not delayed.
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