New Delhi: Firing a fresh salvo against credit rating companies, chief economic adviser in the finance ministry Arvind Subramanian on Thursday said such agencies have been inconsistent in their treatment of China and India, favouring the former. “In recent years, rating agencies have maintained India’s BBB- rating, notwithstanding clear improvements in our economic fundamentals (such as inflation, growth, and current account performance). SBI said one of the common arguments made by rating agencies for not upgrading India’s rating is India’s high debt to GDP ratio at 69.5%. “We may have just played into the hands of rating agencies who maintain India has a high debt/GDP ratio. The rating agencies wanted an excuse, and we may have unintentionally provided them with one,” it added.

Source: Mint May 11, 2017 19:07 UTC