BJP MP Nishikant Dubey has urged Prime Minister Narendra Modi to take immediate action against global rating agencies Moody's, Fitch and S&P, alleging that they are "trying to destabilise" India's economy as part of a "Chinese conspiracy".

Though these rating agencies are based in the US, "China has invested in these firms for its strategic interest", he said in a letter to the prime minister on May 31.

"...These rating agencies act and behave like God and treat our country as a third-grade country. Therefore, India's sovereign rating remains low,” he said.

Incidentally, Moody's on Monday downgraded India's sovereign rating to 'Baa3' from 'Baa2', saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.

'Baa3' is the lowest investment grade - just a notch above junk status.

"These three rating agencies for long have not taken into consideration the correct financial strength of our country like less debt to GDP ratio, and other factors," Dubey said in the letter.

Despite making millions of dollars via their Indian subsidiaries, the Lok Sabha member said, these rating agencies have failed to bring in any advantage or value addition to India and Indian companies.

"...The need of the hour is to put these foreign rating agencies on a tight leash so as to protect India, Indian business and its citizens," he said and requested the prime minister "to take immediate action and protect our country from this Chinese conspiracy".

The BJP MP said the compulsion of ratings from these agencies for Indian entities to avail bank loans should be withdrawn. "Rating should be compulsory only for public/market fund raising that too with Indian owned and Indian controlled rating agencies taking its responsibility," he said.