New Delhi [India], Nov 17 (ANI): In the wake of India's upgradation by global credit rating agency Moody, the Federation of Indian Chambers of Commerce and Industry (FICCI) opined that the move will not only give a further push to foreign investment inflows into the country, but will also enhance our prospects of borrowing money abroad at better rates.
"The ratings upgrade along with the recently reported improvement in India's ease of doing business ranking underlines the fact that we are moving in the right direction. The positive impact of all these measures will be seen in the next few years and we see India moving towards a higher growth trajectory," said FICCI president Pankaj Patel.
"The commitment towards assuring a conducive environment for businesses and various measures undertaken for financial and social inclusion are noteworthy. The Government has been constantly reviewing the Goods and Services Tax post implementation to ensure a smooth transition. Further, the recently announced recapitalisation package for banks along with the earlier announced measures will expedite the resolution of stressed assets making space for fresh investments to kick in," he added.
Earlier in the day, Moody's Investors Service ("Moody's") 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 (India's sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1))
Reports suggest that the global rating company said the reforms undertaken by the government would lead to an enhanced business environment, fuelling the foreign and domestic investment, and subsequently the growth momentum. It also noted that the reforms implemented reduced the risk of a sharp increase in debt, even in potential downside scenarios.
However, Moody argued that measures such as the GST, demonetisation, and others would need time to settle in, and the impact would be witnessed in due course of time. It also claimed that India's growth potential superseded that of many other sovereign nations. (ANI)