As Moody’s upgrades India’s rating, reforms set to foster sustainable growth
Global ratings agency Moody’s Investors Service raised India’s sovereign credit rating to ‘Baa2’ from ‘Baa3’. Moody’s also changed its rating outlook to stable from positive, explaining that at the ‘Baa2’ level, the risks to India’s credit profile were broadly balanced.
It is extremely positive international recognition for India after undergoing various revolutionary reforms introduced in NDA regime over past few years. The economic reforms such as improvement to the monetary policy framework, address issues of NPA’s, recapitalisation, Insolvency & Bankruptcy law, fiscal consolidation framework, GST has brought in much required push in the productivity, improvised business climate ultimately fostering strong and sustainable growth of Indian economy. Government’s reform programme will surely reap the benefits once the smooth implementation is focused upon.
We congratulate Hon’ble Prime minister Shri Narendra Modi on giving this upgrade to the economic credibility of India. Describing the upgrade as a development it will reduce the cost overseas borrowing and improve investments in India’, Dr Niranjan Hiranandani, CMD, Hiranandani Communities and President, National Real Estate Development Council (NAREDCO)pointed out that the rating upgrade had come after a long spell of 13 years. He further added, “Continuous progress on economic and institutional reforms will enhance the India’s high growth potential, overseas borrowing by Indian companies is set to get cheaper. It is also expected that foreign investors will be positively inclined to invest more in India with robust growth story”.
Emphasis on robust infrastructure and rural development spend will sustain thr growth story. Indian companies are set to benefit from rating upgrade as investors would be keen to lend money. Lower cost of borrowings will help govt to maintain fiscal discipline and Indian companies will be able to reap the benefits of lower cost of borrowings.
Thus upgrade in India’s global rating is very heartening indication of resilient and robust Indian financial system poised to strengthen growth. This will act as a further boost to the goal of Housing for All.