For the first time in 14 years, Investors’ service Moody has upgraded India’s rating and praised Narendra Modi- led government for initiating reforms like demonetisation and Goods and Services Tax (GST).
It also appreciated government’s efforts in dealing with debt crisis faced by the Public Sector Banks (PSUs).
In its latest rating report, Moody has raised India’s rank from the lowest grade i.e Baa3 to Baa2 and changed the outlook of the economy from positive to stable.
Post the announcement of India’s improvement in the investor grade, the sensex rose to 235.98 points and closed at 33,342.80. Similarly, Nifty too inflated by 68.85 points, crossing 10,300 mark.
Several political leaders and experts took it to Twitter to express their happiness on this achievement.
Union Finance Minister Arun Jaitely marked Moody’s upgrade as recognition of major structural reforms witnessed by the Indian economy from the past few years.
#Moody‘s upgrade is a recognition of all the structural reforms in the Indian Economy in the past few years.
— Arun Jaitley (@arunjaitley) November 17, 2017
Union Minister of Commerce and Industry Suresh Prabhu praised Prime Minister Narendra Modi for his leadership and suggested this recognition as a value addition to the already garnered performance reported by the World Bank in its ease of doing business ranking.
#IndiaUpgrade by #Moody is a recognition of series of reforms undertaken by the Government under the leadership of Hon.PM @narendramodi ji.This comes amidst slew of global recognitions: #EaseOfDoingBusiness ranking,Pew report
— Suresh Prabhu (@sureshpprabhu) November 17, 2017
However, the Moody has also warned the ratings may go down significantly if the vulnerability of the banks increases sharply.