India's credit rating News

India has clocked an average GDP growth of 8.2 per cent during FY22-25, with macroeconomic stability as inflation has come down, the exchange rate of the rupee is range-bound, and the country’s external balance is sound.

Over the last week, the Sensex jumped 336.44 points, or 1 percent, while the Nifty rallied 106.10 points, or 1.03 percent.

The rating action may act a catalyst of sorts for those foreign investors eyeing India, say analysts.

Finance Minister Arun Jaitley called Moody's upgrading India's rating a belated recognition of all the positive steps taken with regards to the Indian economy.

 Fiscal consolidation and moderate inflation are definite pluses for India, but graft, uncertain policies and their weak execution remain key constraints, according to Moody's Investors Service.  

It said the policy agenda for reform and consolidation are credit positive, but implementation risks remain significant.  

Global agency Moody's on Tuesday said it will upgrade India's rating if the government is able to push through reforms, inflation stabilises, regulatory environment improves and infrastructure investment rises.

Meanwhile, Moody`s, which revised India`s "Baa3" sovereign rating outlook to "positive" from "stable" last month, said its outlook reflects a 2-5 year horizon, rather than near-term growth outlook.

Moody's, which has given the lowest investment grade rating to India, named regulatory complexity and weak social and physical infrastructure as challenges before the country.

The Moody's upgrade of India's rating outlook to 'positive' from 'stable' is significant, but the government will have to do more, Finance Minister Arun Jaitley said on Thursday.

Finance Ministry on Thursday said the NDA government has restored the faith of investors and rating agencies on the growth outlook of the Indian economy.

India's sovereign rating currently stands at 'Baa3', the lowest investment grade -- just a notch above 'junk' status.

Ahead of Prime Minister Narendra Modi's Europe visit, Moody's has raised India's credit rating outlook to stable, validating government's reform thrust and fiscal discipline.

The decisions to deregulate diesel prices and hike the natural gas prices are "credit positive" as it would bring in fiscal discipline, ratings agencies Moody's said on Tuesday.

India's growth is expected to accelerate to 5.6 percent in the current fiscal and further to 6.5 percent in 2015-16, buoyed by strong investments and political certainty, rating agency Fitch said on Wednesday.

Global brokerage Bank of America Merrill Lynch on Thursday said "worst is over" for India and rating agencies are likely to upgrade their outlook for the country sooner rather than later.

Fitch Ratings on Thursday said it has retained the 'BBB-' sovereign rating - the lowest investment grade - on India and a revision will depend on the government's efforts to usher in bold reforms.