Revenue Secretary welcomes Moody's upgrade of India's rating

Revenue Secretary Dr Hasmukh Adhia on Friday welcomed the upgrade of India's sovereign rating by Global rating company, Moody's Investors Service, and said the path of fiscal reforms chosen was "well recognised."

"The path that the government has chosen for long term reforms and fiscal consolidation is well recognised by investors already. The rating agency too has now confirmed it formally, which is welcome," he tweeted.

In a much-needed thrust to the economy, Moody upgraded India's sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive.

Reports suggest that the global rating company said the reforms undertaken by the government would lead to an enhanced business environment, fuelling the foreign and domestic investment, and subsequently the growth momentum. It also noted that the reforms implemented reduced the risk of a sharp increase in debt, even in potential downside scenarios.

However, Moody argued that measures such as the Goods and Services Tax (GST), demonetisation, and others would need time to settle in, and the impact would be witnessed in due course of time. It also claimed that India's growth potential superseded that of many other sovereign nations.