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New Delhi, Nov 17: Credit agency, Moody’s on Friday upgraded India’s credit ratings, lauding the Narendra Modi government for its reform push. BJP president Amit Shah welcomed Moody’s move, saying it was a vindication of the government’s good governance and reforms.
“Modi Government’s good governance and reforms receive yet another vindication. Moody’s upgrades India’s sovereign ratings for the 1st time since 2004,” he wrote in a tweet.
“India’s largest ever increase in Ease of Doing Business rankings, Pew study ascertaining PM @narendramodi ji’s popularity, Moody’s upgrade are all reflections of Modi Govt’s hard-work and reform process,” he added.
Meanwhile, the market gave a loud cheer to Moody’s announcement as Sensex surged over 397 Points or 1.20% to 33,504.44 while the wider Nifty jumped 118 points or 1.16% at 10,333.60. (Also read: Markets Surge, Sensex at 33,504, Nifty at 10,333 as Moody’s Upgrades India’s Rating)
Moody’s raised India’s bond ratings from to Baa2 from Baa3.
“Moody’s Investors Service (“Moody’s”) has today upgraded the Government of India’s local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. Moody’s has also upgraded India’s local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3,” it said.
“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,” it added.
Moody’s also hailed the government for its initiatives like demonetisation, Aadhaar and direct cash transfer of subsidies.
This is the third time in the recent while that an international agency lauded the government. Before this, World Bank had upgraded India’s ‘Ease of Doing Business’ ratings. Most recently, Pew Research had said that Modi was the most popular leader– Amit Shah had also took to Twitter to laud the government.