Modi govt's good work stands vindicated by Moody's upgrading India's ratings: Amit Shah

NEW DELHI: In a big boost to India, Moody's Investors Service raised India's sovereign bond rating for the first time since 2004. Elated over the rating agency upgrading India, Bharatiya Janata Party National President Amit Shah called it a proof of Narendra Modi government's good work.

"Modi Government's good governance and reforms receive yet another vindication. Moody’s upgrades India’s sovereign ratings for the 1st time since 2004," he tweeted.

"Moody's believes that Modi Govt's reforms will improve the business climate, enhance productivity, attract more investment & put India on a higher growth trajectory," he added.

Shah also recalled the recent increase in Ease of Doing Business rankings and Pew study and said that all these reflect the hard work that the Modi government in putting in.

Upgrading India from Baa3 to Baa2, Moody's said that the reforms being pushed through by Narendra Modi's government will help in stabilising rising levels of debt. 

Moody's also applauded the Goods and Services Tax (GST) calling it a "landmark reform that turned India's 29 states into a single customs union." It raised hope that GST will promote productivity by removing barriers to interstate trade.

The ratings agency said that it expects India's real GDP growth to moderate to 6.7 per cent in the fiscal year ending in March 2018 from 7.1 per cent a year earlier. 

The markets opened on a high after Moody's released its ratings with Sensex skyrocketing 414 points and Nifty racing past 10,300.