The Indian government hit out at global ratings agency Moody's, for not upgrading India's sovereign ratings. Economic Affairs Secretary Shaktikanta Das expressed concern over the method followed by the agency, according to sources. They quoted him as saying, "It is like giving a ruling before the arguments began."
Das reportedly told Moody's that they made an announcement based on the information they had gathered on their own, and did not factor in what the government had to say. The Finance Ministry said Moody's went forward and issued a public statement last week, without factoring in crucial reforms such as opening up of several sectors to FDI, steps on ease of doing business, movement towards rollout of GST from April and the enactment of the Bankruptcy Code. It also pointed out that ratings agencies did not respond during the Greek debt crisis, and expressed doubts about the way they measure a country.
“For so many years, they kept saying GST is not happening. But now it is a reality,” said another official. They pointed out that the ratings agencies had been caught napping when the debt crisis hit Greece and some other European countries and expressed doubts about the way they measure a country. The finance ministry also pointed out that India was seen as a bright spot given the high rate of growth and that current account deficit was under control with inflation well within target.
