S&P report very satisfying: Piyush Goyal

Union Railways and Coal Minister Piyush Goyal on Friday said the recent Standard & Poor's (S&P) Global's report was very satisfying and that it showed that the Indian economy was moving further.

The financial services company, Standard & Poor's (S&P), earlier in the day, in its report, retained its outlook on India as stable, and kept the rating unchanged at BBB minus.

"All in all it is a very satisfying report. It shows that economy is strong and is improving further. And as per their projection pace of development, it will accelerate further in 2018-20. Stable outlook reflects our view that over the next two years, the growth will remain strong. India will maintain its sound external accounts position and fiscal deficits will remain broadly in line with our expectations," Goyal told ANI.

"We are extremely happy that the S&P has continued to affirm 'BBB minus' with a long term sovereign rating with a stable outlook. All economists and readers of economy are aware that usually S&P responds much slower than Moody's and Fitch. Traditionally, it has been seen that Moody's is first of the block then Fitch follows and after that the S&P has a time lag," he added.

While the agency retained its rating on India, it also lauded the Modi-led government's fiscal consolidation drive under which multiple reforms were taken towards the path of a favourable economy.

"In some sense they gauged the mood of India. They have suggested that despite hurdles coming in the Upper House, the Modi Government has been successful in making transformational changes possible in India. They have also praised India for having strong democratic institutions including the press. Ratings on India reflect the country's strong Gross Domestic Product (GDP) growth, sound external profile and improving monetary credibility," he added.

The union minister further said India's strong democratic institutions and its free press promote policy stability and compromise underpinned the ratings.

The rating stance taken by S&P Global Ratings comes days after Moody's Investors Service raised India's sovereign rating for the first time in over 13 years on growth prospects boosted by continued economic and institutional reforms.

The growth outlook is supported by rising private consumption, an ambitious public infrastructure investment programme and a bank restructuring plan that should help revive investment.