Ratings and reforms

Fiscal position should be improved with sustained growth

In a recent interview, a senior executive of one of the big global rating agencies said the inclusion of Indian-government bonds in global bond indices would not considerably increase the government’s strength to fund itself, and improving debt affordability will be a crucial criterion for an upgrade. There is considerable enthusiasm — both in the government and financial markets — about India’s inclusion in global bond indices. JPMorgan has announced it will include Indian bonds in the emerging market bond index from June this year. The inclusion, according to market estimates, is expected to bring in stable foreign flows of