Indian Rating Institution: Goyal

New Delhi, Nov 11 (PTI) Commerce and Industry Minister Piyush Goyal on Tuesday said that as India moves towards the goal of Viksit Bharat 2047, there is a need to establish a robust, credible, and world-class rating institution from within the country.

Goyal said that despite strong fundamentals, India's rating was not upgraded for long by global rating agencies.

"As we move towards Viksit Bharat 2047, let's aim for our own robust credible world class rating institution from India," he said here at CareEdge Global-The Dialogue.

He said that credit rating agencies have an important role in the virtuous cycle of growth.

"...the investors look at the ratings that the agency gives, basis that you raise investments, you also raise business confidence, that business confidence will lead both to capital flows and debt flows. Banks look up to ratings as an important criteria. Credit is extended, entrepreneurs or businesses take bigger and bolder bets with the confidence that they have received from the ratings and jobs are created," he said.

He added that very often even small disturbances or changes in the Indian economy are exaggerated by some of the rating agencies.

"The distress signals that they give are disproportionate to what the reality is, and that's where I would urge CareEdge also to play a responsible role, to help investors, bankers...," he added.

The minister said that he has urged his team to give prominence to ratings done by our own Swadeshi rating agency.