NEW DELHI, Nov 17: Welcoming the Moody’s upgradation of India’s rating, Finance Minister Arun Jaitley said that it only proved that the economic reforms taking place in the country in the last few years were “directional and has been internationally recognised”.
Addressing a press conference here on Friday, Mr Jaitley said, “We welcome Moody’s upgradation of India’s rating which has been upgraded from positive to stable after a gap of 13 years.
It is a major international recognition of positive economic and institutional reforms undertaken by the government in the last three years.”
He said, Moody’s have rightly recognised the structural reforms undertaken, including Goods and Services Tax (GST), sound monetary policy framework, addressing recapitalization issues of Public Sector Banks (PSBs), insolvency code and measures taken to bring formalization and digitalisation in the economy.
He said the smooth transition of historic GST and demonetisation were now taking Indian economy to a greater formalisation and digitisation, something which is being universally acknowledged.
Taking on those who opposed demonetisation and GST, Mr Jaitley said that those who had doubts on India’s reform process should need to seriously introspect.
The US-based noted rating agency on Friday upgraded India’s sovereign credit rating by a notch to ‘Baa2’ with a stable outlook. “The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for Government debt, and will likely contribute to a gradual decline in the general Government debt burden over the medium term,” Moody’s said in a statement.
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. (UNI)
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