Finance Minister Arun Jaitley termed the move as belated recognition of reforms undertaken by the government and said the reform agenda will continue with emphasis on higher spending on infrastructure and in rural areas.
Government officials expressed hope that other credit rating agencies, such as S&P and Fitch, would follow suit.
While upgrading the rating, Moodys cited reforms like the recently-introduced Goods and Services Tax (GST), improvements to the monetary policy framework, measures to clean up non-performing loans and efforts to bring more areas into the formal economy.
The one-level step-up from the lowest investment-grade ranking puts India in the league of the Philippines and Italy.
Indias sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1). Baa3 was the lowest rating in the investment grade just a notch above the junk status. Baa2 rating means investment grade with moderate credit risk, and is two notches above the junk grade. PTI
Source : http://assamtribune.com