NEW DELHI: The Government has expressed ‘extreme disappointment’ with the latest report from the Moody’s rating agency concerning India’s economic outlook. A senior government official has labelled the report as highly contradictory, calling into question the credibility of the rating agency.
The senior official took issue with Moody’s statement: “India’s fiscal strength remains a key weakness in the sovereign credit profile,” remarking, “How can my strength be my weakness? Moreover, they are unwilling to have a like-to-like comparison with India.”
The Government also criticised Moody’s comment that it expects high nominal GDP growth and ongoing fiscal consolidation to “stabilise the government debt burden at high levels.” The senior official noted that Moody’s has not defined what constitutes a high level of debt, adding, “Bulk of our borrowing is domestic.”
