Govt's reform agenda powers Moody's India rating upgrade

Reforms such as the GST, the rationalisation of government schemes and better-targeted delivery are expected to improve India's fiscal position: Moody's

On Friday, Moody’s Investors Service upgraded India’s ratings to Baa2 on the back of several reforms implemented by the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government.

The key reforms that the rating agency factored in its decision include the shift to the new indirect tax regime (goods or services tax or GST), the new monetary policy framework, measures taken to address the non-performing assets (NPA) problem, along with demonetisation, Aadhaar and the targeted delivery of benefits through the direct benefit transfer (DBT) system.

“Wide-ranging economic and institutional reforms undertaken by the government will enhance India’s growth potential,” said Moody’s Investor