Finance Ministry questions ratings process of Moody's

Economic Affairs Secretary Shaktikanta Das on Thursday questioned the decision of Moody's for a ratings review of India in two years' time, and said the agency's exercise must consider all aspects of reforms being undertaken by the country with a sound methodology.

"Moody's had taken a position that they would consider a ratings upgrade after two years. Our concern was only about the methodology of the whole process," Das told reporters here, two days after the ratings agency alluded that India's ratings review could emerge in the medium term.

"We would expect interactions with the Finance Ministry and the Government to take place. Then, of course, they are a rating agency and they are entitled to arrive at their own conclusions. But due process has to be followed, you cannot jump the gun," Das said.

The secretary said that without such an exercise, such a conclusion will prove dificient. He also said that reforms in India were now gathering significant roots and developing sufficient depth, which can't be doubted.

"In the past two years, especially, the number of reforms, the kind of reforms and the pace of reforms being taken by the government -- due weightage has to be given."