he Narendra Modi government plans to pitch for a sovereign rating upgrade from US-based Moody’s Investors Service during its meeting next week, buoyed by the economic recovery in the first quarter of the current fiscal.
The rating agency had downgraded India’s sovereign rating to Baa3 (the lowest investment grade) from Baa2 with a negative outlook in June last year.
It had cited a weak reform push contributing to a prolonged period of slow growth amid the Covid-19 pandemic, pointing out that the outbreak amplified vulnerabilities in India’s credit profile that were already present and building prior to the shock.
The officials of the rating agency are slated to meet North Block officials next Tuesday, sources said. The officials are expected to point out the economic measures taken by the government and steps being taken to meet the budget target.
Moody’s had last month projected India’s growth at 9.6 per cent for the 2021 calendar year and 7 per cent for 2022, unchanged from its May 2021 forecast, citing the picking up of economic activity along with the gradual easing of Covid-19 restrictions. The rating agency said it expects further upside to growth as economies around the world progressively reopen.