Chief Economic Advisor Arvind Subramanian on Friday welcomed India’s rating upgrade by Moody’s, saying it was “long overdue”. He attributed the upgradation to government’s policies such as the implementation of the Goods and Services Tax (GST), its bank recapitalisation plan, the bankruptcy code and macroeconomic stability, reported news agency PTI. Moody’s Investors Service upgraded India’s sovereign rating from Baa3 to Baa2 with a stable outlook, after 13 years. Subramanian hoped other agencies, like S&P and Fitch, follows suit.
“It’s a welcome development, but we also feel it was long overdue… it’s a recognition of the actions that the government has undertaken like GST, bankruptcy. We also need to keep all these things in perspective,” Chief Economic Adviser Arvind Subramanian was quoted as saying by PTI. “(The government) is going to do what it has to do on domestic front — employment growth, economic growth, reviving investment.”
Finance Secretary Hasmukh Adhia, taking to Twitter, said, “The path that Government has chosen for long term reforms and fiscal consolidation is well recognised by investors already. The rating agency too has now confirmed it formally, which is welcome.”
Economic Affairs Secretary Subhash Chandra Garg hailed the move as well, saying, “The fiscal deficit consolidation, debt control and all so everything which the government has done in the past couple of years have been recognised. They are projecting a little rise in the trajectory going forward, so they are conscious of the real dynamics of the debt situation. We, of course, remain committed to the fiscal path,” reported PTI.
(With inputs from PTI)