Mumbai: India questioned the methodology used by global rating agencies, asking why Asia’s third-largest economy has been denied an upgrade even as growth and fundamentals improve. “Rating agencies have inconsistent standards,” Arvind Subramanian, chief economic adviser at the finance ministry, told reporters in New Delhi on Tuesday. The report said S&P upgraded China in 2010 despite an “ominous scissors pattern” of rising debt and slowing economic expansion. At the same time, India has remained stuck at BBB-, even though there’s been a “dramatic improvement” in growth and economic stability since 2014. China’s ratings reflect our view of the government’s reform agenda, growth prospects and strong external metrics, S&P wrote in a 26 January statement.

Source: Mint February 01, 2017 03:40 UTC