Global rating agency, Moody's Investor Service has upgraded India's sovereign rating to Baa2 from Baa3 and changed the outlook on the rating to stable from positive.
"The decision to upgrade the ratings is underpinned by Moody's expectation that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term," Moody's Investor Service said.
The move by the international rating agency is a pat on the back for the Modi government which has over the last few quarters, been struggling to push economic growth, due to the impact of demonetization and the GST.
Stocks in India are slated to open higher, as the SGX Nifty was suggesting, following the rating upgrade.
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