The Ministry of Finance, Govt. of India is expecting an upgrade in ratings from credit agencies by the year-end on the account of the policy initiatives, declining inflation, and the enhancement in the financial position of the government.
The Finance Secretary, Mr. Rajiv Mehrishi stated in an interview that on the basis of the policy initiatives taken by the Indian government, the rating agency Moody's has a change of outlook for India to positive from being stable. The effect of policy reforms will be experienced by the end of 2015 and the credit agencies would further enhance the ratings.
He also stated that the decline in the cost of crude oil is expected to sustain during the period of 2015-16, adding that this is likely to decrease the oil import bill and to effect favorably on the present account balance. It will also assist in moderating the price hike in general because the petroleum products are being used in the manufacturing of more or less every commodity.
Listing the measures taken by the Indian government, Mr. Rajiv Mehrishi told that the remarkable improvement has been made in the previous one year that is 2014 for enhancing the macro fundamentals of the Indian economy such as the sharp moderation in the inflation level, the control of existing account deficit, and the fiscal deficit to the manageable levels, constancy of rupee, and raised capital flows, which is bringing confidence in the mindsets of the local and the foreign investors.