Moody's rating upgrade recognises govt's commitment to growth and reform: NITI Aayog chief
NITI Aayog CEO Amitabh Kant has hailed Moody's upgrade of India's sovereign rating and said that the government is committed towards "growth and reform".
Moody's upgraded India's sovereign ratings had a major impact on stocks, bond and currency markets on Friday. For the first time in more than a decade, Moody's Investors Service has upgraded India's sovereign rating. In what is being called a big rise, Moody's ratings have been upgraded citing continued progress in the nation's economic and institutional reforms.
"This is a recognition of the vast number of reforms done by the Indian government. Moody's have taken a while but now recognized that this Govt is committed to growth and reform," Amitabh Kant said.
This is the first time since 2004 that India's government bond ratings have been upgraded. The rating agency upgraded India's rating to Baa2 from Baa3 with an outlook on the rating as 'stable'.
Former Economic affairs secretary Shaktikanta Das has termed Moody's upgrade as an extremely positive signal for the Indian economy.
"It is an extremely positive signal for investment happening in India - both foreign and private," Shaktikanta Das said.
The last time India's rating was upgraded was during the BJP government led by Atal Bihari Vajpayee. Moody's has also raised India's long-term foreign-currency bond ceiling to Baa1 from Baa2, and the long-term foreign-currency bank deposit ceiling to Baa2 from Baa3.