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V.Balasubramani
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Moody’s ups India outlook
[h=2]Says country has grown faster than its peers[/h]Moody’s, a global ratings agency, raised India’s rating outlook to “positive” from “stable” on Thursday, but retained the Baa3 rating. All rating agencies maintain India at the last rung of investment grade.
Moody’s is the first to give the country a positive outlook after downgrading it over a sagging economy. The change in outlook, its release said, has been driven by the view that there is an increasing probability of actions by policymakers enhancing India’s economic strength.
“India has grown faster than similarly rated peers over the last decade due to favourable demographics, economic diversity, as well as high savings and investment rates. Moody’s expects these structural advantages, supported by relatively benign global commodity prices and liquidity conditions, will keep India’s growth higher than that of its peers over the rating horizon,” the release said.
Chief Economic Adviser Arvind Subramanian said the upgrade validated the direction of the Centre’s reform programme and expressed hope for a bump-up in India’s rating. “It confirms something that we have been saying for some time now that the growth prospects and the macro-economic prospects for the economy are improving.”
Read more at: Moody?s ups India outlook - The Hindu
