MOODY’S INDIA UPGRADE Will continue reforms:FM

Finance Minister Arun Jaitley on Friday termed Moody's upgrading India's sovereign rating after 13 years as "belated recognition" of reforms undertaken, saying that the reform agenda will continue with emphasis on higher spending on infrastructure and in rural areas.

He vowed to maintain the fiscal discipline, stating that the government "intends to stay the course on fiscal consolidation in the medium term".

Moody's Investors Service on Friday upgraded India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. The upgrade came after 13 years. India's sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1). 'Baa3' was the lowest rating in the investment grade -- just a notch above the 'junk' status. "We welcome (the upgrade) and believe that it is a belated recognition of all the positive steps taken in India in the last few years which have contributed to the strengthening of the Indian economy," he told, reports PTI.

The upgrade recognises major economic and institutional reforms undertaken by the government, he said.

Some of the reforms he listed included the Goods and Services Tax (GST), putting in place a sound monetary policy framework, recapitalisation of public sector banks, demonetisation and use of Aadhaar to bring formalisation and digitalisation in the economy. Asked what would be the next reform thrust, Jaitley said the important emphasis now would also be implementation as well as reaping benefits. Emphasis would be on infrastructure building and spending in rural areas, he said, adding that FII inflows are already positive and would continue to remain so after the rating upgrade.