New Delhi [India], November 17 (ANI): Chief Economic Advisor Arvind Subramanian on Friday said while the enhancement of India's rating by Moody was a welcome move; it was "long overdue".

"It's a welcome development, but we also feel it was long overdue. It is a recognition of the actions that the government has undertaken on GST, bankruptcy and all of that," Subramanian told reporters here.

The Chief Economic Advisor also took to Twitter to express the same.

Earlier in the day, Moody upgraded India's sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive, thus providing a much-needed impetus to the Modi government.

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 Goods and Services Tax (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 It also claimed that India's growth potential superseded that of many other sovereign nations.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)


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