India’s Push For Homegrown Credit Rating Agencies Highlighted At CareEdge Ratings Conference 2024″

PUNE: In a thought-provoking event hosted by CareEdge Ratings, key industry leaders and experts gathered to discuss the importance of promoting homegrown credit rating agencies in India. The conference, titled “Conversations 2024”, saw Shri Amitabh Kant, G20 Sherpa and Former CEO of Niti Aayog, Government of India, emphasize the critical role of appropriate sovereign credit ratings in driving economic growth in emerging economies.

Mr. Kant highlighted the need for global credit rating agencies to address biases and lack of transparency in assessing countries like India. He called for a more objective approach to evaluating economic fundamentals, stressing that developing countries should not be unfairly labeled as risky investments based on subjective assessments.

The event also featured insightful discussions on global capital flow and risk in changing world order, with experts emphasizing the importance of transparent and professional credit rating agencies in today’s complex financial landscape. Mr. Mehul Pandya, MD & Group CEO of CareEdge Ratings, underscored the need for a transparent assessment methodology to support the growth potential of emerging economies.

Mehul Pandya, MD & Group CEO of CareEdge Ratings said “The panel discussion addresses the context of global capital flow, growth drivers, and challenges with the perspective of the impact of sovereign rating. The debt levels of advanced economies and emerging economies are indeed different. The growth potential of emerging economies and the investment it necessitates need to be looked at in the sovereign ratings methodology. These aspects need to be addressed transparently. We believe, that both the assessor need to be transparent so that the entity being assessed knows about the methodology and how it’s being done.”

Shri Babasaheb Neelkanth Kalyani, Chairman of Kalyani Group, echoed Mr. Kant’s sentiments on India’s growth potential, emphasizing the importance of focusing on manufacturing to drive economic expansion. Shri Gulshan Malik, Deputy Managing Director of State Bank of India, highlighted the banking sector’s readiness to support India’s next phase of growth.

Overall, the CareEdge Ratings conference shed light on the crucial role of credit rating agencies in shaping India’s economic future and the need for international cooperation to ensure fair and transparent assessments. As India strives to become a developed country by 2047, the push for homegrown credit rating agencies is more important than ever.