India Minister Says Fitch, Moody's, S&P Have Been 'Unfair' to India

Commerce and Industry Minister Piyush Goyal on Friday stated that global credit rating agencies Fitch, Moody's, and Standard & Poor's (S&P) have been unfair to India. Speaking at an event, he said these agencies have not adequately recognized India's economic growth story, strong fundamentals, and future potential.

"So far, we only had Fitch, Moody's, and Standard & Poor, and I can say on record that they have been unfair to India. They have not recognized the India growth story, the strong India fundamentals, and the Indian capability and future, and captured it as much as a rating agency should have done," Goyal said. He added that he would not attribute motives but expressed surprise at the agencies' assessments.

The minister contrasted this with Mumbai-based rating agency CareEdge, which he praised for its objective work. CareEdge, formerly known as CARE Ratings, is one of India's leading credit rating agencies.

Global rating agencies have assigned India a sovereign credit rating of BBB- (lowest investment grade) with a stable outlook, citing concerns over high public debt and fiscal deficits. Critics argue these ratings do not reflect India's rapid economic growth and improving fundamentals. The government has repeatedly called for a revision, citing improved macroeconomic stability, strong foreign exchange reserves, and structural reforms.

This is not the first time Indian officials have criticized global rating agencies. In the past, ministers have argued that the agencies apply a biased methodology and are slow to upgrade developing economies. The government has also pushed for greater representation of emerging economies in the rating process.

While Goyal refrained from speculating on motivations, his remarks highlight ongoing tensions between India and the three major rating firms. The agencies maintain that their ratings are based on transparent criteria and economic data.

India's growing economic clout and its status as the world's fifth-largest economy have intensified calls for a rating upgrade. However, fiscal challenges, including high debt and deficit levels, remain sticking points. The debate underscores the complexities of sovereign risk assessment and the differing perspectives of national governments and international agencies.