The government emphasised that the country's credit strengths were 'much better' than most similar-rated economies.
The finance ministry, in a presentation to the credit rating agency, highlighted that the latest global Competitiveness Report 2011-12 issued by the World Economic Forum indicated that India's sovereign rating was at par with 'Baa1' category countries, two notches above its current rating given by Moody's.
It said the Indian economy has shown continued growth, resilience in the face of economic crisis, and a commitment to reforms during the last seven years -- and that should be factored in Moody's calculations.
At present, Moody's government bond ratings for foreign currency debt and domestic currency debt of India are 'Baa3' with a stable outlook and 'Ba1' with a positive outlook, respectively.
The last upgrade on the foreign currency debt was done by Moody's in 2004.
Moody's judges obligations rated 'Baa' to be 'moderate credit risk' and 'Ba' to have 'questionable credit quality'.
"The government encouraged the Moody's team to take a fresh look at the long-term credit strengths of the Indian economy and consider a long due credit rating upgrade for India's sovereign debt," a finance ministry official said after the meeting with Moody's, chaired by Economic Affairs Secretary R Gopalan.
The finance ministry argued India had good long-term growth prospects arising from high savings and investment ratios, favourable demographics, growing middle-class income, rapid progress in infrastructure, and a stable democratic polity backed by strong constitutional institutions.
It said the government was actively working towards structural reforms in the economy.
This year, it had undertaken several policy measures, including bold fuel price hikes, a proposal to allow 51 per cent foreign direct investment in multi-brand retail and draft land acquisition bill.
Recently, Moody's had had lowered the outlook on the Indian banking sector to negative from stable, saying that slow global economic growth could impact profitability.
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