India seeks higher rating from Fitch

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New Delhi: India on Thursday pitched for a rating upgrade by the global agency Fitch saying it is committed to keep subsidies within 2 per cent of the Gross Domestic Product (GDP) and contain fiscal deficit.

"We said we are committed to capping subsidy at 2 per cent…We pitched for a rating upgrade," said a Finance Ministry official after a meeting with the representatives of Fitch here.

Fitch had last year affirmed BBB- rating for India, indicating moderate degree of safety regarding timely servicing of financial obligations.

Finance Ministry officials had earlier held similar meetings with representatives of other credit rating agencies – Moody`s and Standard and Poor`s. Much to the discomfort of the government, Standard and Poor`s last month lowered India`s rating outlook to negative from stable, while retaining the rating at BBB.

Finance Minister Pranab Mukherjee on Wednesday said in the Rajya Sabha (Upper House) that the government would launch austerity measures to deal with the tight fiscal situation and would try to keep subsidies on oil, fertiliser and food within 2 per cent of the GDP.

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