Does India have a case for the upgrade it seeks from rating agencies?

The economy is yet to reach pre-pandemic level on many fronts, fiscal deficit and debt-to-GDP ratio remain pain points; however, key reforms could work in the country's favour

India, which currently has the lowest investment grade, has sought an upgrade from rating agencies. While Moody's Investors Service has obliged by upgrading the outlook on sovereign ratings to stable from negative, it retained the sovereign ratings. As such Moody's action has fallen short of India's expectations.

The moot question remains whether there is really a case for sovereign rating upgrade given that the economy is yet to reach pre-pandemic level on many parameters, its fiscal deficit may continue to be in double digits as proportion of GDP and debt to GDP ratio may also be high for the second