India's credit profile to improve on fiscal prudence, Moody's says

New Delhi: India's credit profile is likely to improve with efficient implementation of fiscal discipline within a medium-term framework and setting up of a fiscal council, as suggested by the Fiscal Responsibility and Budget Management (FRBM) Committee, stated Mr William Foster, sovereign analyst, Moody's Investors Services India. The Committee also suggested that the fiscal deficit should be brought down to 2.5 per cent by 2022-23 from 3.2 per cent currently and the existing FRBM Act 2003 should be replaced by a new Debt and Fiscal Responsibility Act. Further, former Revenue Secretary, Mr N K Singh-headed panel suggest that India's debt-to-GDP ratio should be brought down to 40 per cent by 2023 from 49 per cent currently. Moody's assigns a Baa3 rating for India, thus maintaining a positive outlook.