"Rating upgrade by Moody's Investors Service on India's sovereign bonds would make a huge a difference to India Inc's capacity to tap the global financial markets at very competitive rates", said Assocham Secretary General D.S. Rawat.
Union Finance Minister Arun Jaitley on Friday termed the upgrade in Moody's ratings as "extremely encouraging" and also asked the detractors to "introspect" their positions.
Jaitley said that it is encouraging that there is an global recognition and this recognition firms our determination to follow the track that we have embarked upon.
Credit rating agency upgrades India's sovereign bonds for the first time in nearly 14 years, changing its rating outlook to stable from positive. He said the upgrade has not happened in isolation and for the last three years the India has been the fastest growing major economy.
Defending demonetisation, he said it has helped in taking the economy towards formalisation and digitalisation, and the success was being universally acknowledged.
Boosting investor sentiments, U.S. credit rating agency Moody's on Friday upgraded India's sovereign rating to Baa2 from its lowest investment grade of Baa3 after 13 years, a development Finance Minister Arun Jaitley said was "an extremely encouraging" global recognition of the structural reforms of last three years.
"Introduction of Aadhar, recapitalization of public sector banks, smooth transition of GST and demonetization have all been landmark reforms", he said.
The rating upgrade was the first in 13 years.
"All these reforms were directional... all steps that we have taken follow a particular roadmap... It is a major worldwide recognition of major economic and institutional reforms undertaken by the Government of India", he said while addressing a press conference here. The rating agency also assigned a stable outlook to SBI's DIFC branch.
Here are four main points based on which Moody's upgraded India's credit ratings. The country's sovereign rating has now moved a notch above Baa3, the lowest investment grade and just a level above junk rating, to Baa2.