Pitching for a review of the country’s sovereign ratings, the finance ministry on Tuesday expressed confidence of a revival in economy growth and keeping the fiscal deficit in check.
“All in all we believe that the numbers are very credible. And we will be able to meet our fiscal deficit targets. And similarly on growth also, we told them why we believe… (in our target),” said Arvind Mayaram, finance secretary on Tuesday after a meeting with officials from international rating agency Standard and Poor’s.
S&P is the only major international rating agency that has placed India on the “negative” outlook in long term ratings. According to sources, the meeting between finance ministry officials and S&P executives centred on the credibility of India’s growth forecast and fiscal deficit target of 4.1 per cent in 2014-15.
However, Mayaram expressed confidence that the economy would clock a growth of 5.8 per cent to 5.9 per cent this fiscal. “Even OECD’s latest projection sees growth coming back…This year they see an upside risk on that projection, especially on account of the growth they are seeing in the industrial and manufacturing sectors,” he told reporters.