New Delhi: After the intimidating rating downgrade to negative by Standard and Poors (S&P), all eyes are now on upcoming Fitch and Moody’s rating on India. Representatives from the Finance Ministry and Reserve Bank of India will hold a meeting with Fitch and Moody’s in near future. Government’s objective will be to convince about the resources to handle economic challenges.

According to experts, representatives from the government met with S&P officials as well in the past. In the meeting held on April 11 and April 12, it was projected that Indian economy has the capacity to withstand economic challenges. But the effort has gone in vain with the rating downgrade. Policy paralysis is also been reasoned behind dismal rating.

S&P had made stern comments on Indian economy in February 2012. Following that, talks on India’s rating cut spread in international circuit. But the Finance Ministry did not take any necessary steps to rule out the possibility.

According to experts, the officials from S&P raised concerns that with slow economic reforms in the country, any improvements in fiscal deficit seems to be far cry. Similar concerns have also been shown by Fitch and Moody’s. However, the government may not take chances and make all endeavour to convince that these rating agencies are asking us to perform to our expectations for better economic growth. 

Normally, before making investment in any country, global investors look into the reports of two different credit rating agencies. Positive ratings from Fitch and Moody’s may act as breather for the government.