Better late than never: Jaswant

Finance Minister Jaswant Singh said the upgrade of the country's foreign currency rating by Moody's Investor Services reflected the reality of India's emerging economic strength.

"Der aaye par durust aaye (Better late than never)," he said. Reacting to the move by the rating agency to accord India investment grade and yesterday's upgrade by Fitch Ratings of India's long-term foreign currency ratings to BB+ from BB, Singh said: "I have always held India to be investment grade. This is not hyperbole but the reality."

Commenting on the impact of the upgrade, Singh said, "This will help companies to raise funds at lower rates and therefore help the economy."

In the same vein, the chief economic adviser in the finance ministry, Ashok Lahiri, said the move would reduce the cost of accessing funds by corporates. "It is a good thing. It will help lower companies' borrowing costs."

The finance ministry said the upgrade reflected the strength of India's current economic indicators.