Moody’s upgrade sovereign Credit Rating of India

Speed Post News Network

New Delhi : Moody’s Investors Service ( Moody’s) has upgraded the Government of India’s local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. India’s rating has been upgraded after a period of 13 years. India’s sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1). Moody’s is one of three big Credit Rating agencies in the world. The other two are : Standard & Poor (SP) and Fitch Ratings.
Government of India welcomes the upgrade and believes, as rightly noted by the Moody’s, that this is in recognition of major economic and institutional reforms undertaken by Government of India. These reforms include introduction of path breaking Goods and Services Tax (GST), putting in place a sound monetary policy framework, measures taken to address recapitalisation of public sector banks and a number of measures taken to bring formalisation and digitalisation (The JAM agenda) in the economy – demonetization, the Aadhaar system of biometric accounts and targeted delivery of benefits through the Direct Benefit Transfer (DBT) system, according to a PIB release.
Moody’s have also rightly recognized the Government’s commitment to macro stability which has led to low inflation, declining deficit and prudent external balance and Government’s fiscal consolidation programme which has resulted in a reduction of fiscal deficits from 4.5% of GDP in 2013-14 to 3.5% in 2016-17 and its consequential sobering impact on general government debt.