Mumbai, April 9: Ahead of Prime Minister Narendra Modi's Europe visit, rating agency Moody's has upgraded India's credit rating outlook to positive from stable, validating government's reform thrust, better growth and fiscal discipline.
It said the measures taken by the policymakers would enhance economic strength.
The rating agency also said that it could upgrade India's rating in 12-18 months time if such measures propel growth.
The ratings agency has also affirmed India`s Baa3 rating.
Moody's said it expected structural advantages will keep India's growth higher than that of its peers over the rating horizon.
"The ability of policymakers to strengthen India's sovereign credit profile to a level consistent with a higher rating will become apparent over the next 12-18 months," Moody's said.
Meanwhile, Finance Ministry on Thursday said the NDA government has restored the faith of investors and rating agencies on the growth outlook of the Indian economy.
"Moody's decision continues to reaffirm that rating agencies, global investors and our own domestic businesses have faith in India's growth outlook and our financial strength as a sovereign," Minister of State for Finance, Jayant Sinha told reporters here.
(With agency inputs)