Slams 'biased' sovereign credit ratings

New Delhi: Coming down hard on sovereign credit ratings, the Economic Survey 2020-21 said that the ratings do not reflect the fundamentals of the Indian economy.

Describing the sovereign credit ratings as 'noisy, opaque and biased', the document prepared by the Finance Ministry's Chief Economic Adviser (CEA) Krishnamurthy V Subramanian said that these credit ratings also damage flows of foreign portfolio investments.

The survey questioned whether India's sovereign credit ratings reflect its fundamentals, and found evidence of a systemic under-assessment of India's fundamentals as reflected in its low ratings over a period of at least two decades.