Moody’s has improved India’s rating, know at what rate the country will develop now?

New Delhi: Moody’s has improved India’s ratings after the second wave of Corona epidemic spread across the country. Along with the sharp recovery seen in the Indian economy, it has also made its mark on the global platform, due to which Moody’s has taken India’s rating out of negative and placed it in the stable category. At the same time, in March 2021, the rating agency had put India in the negative category. Moody’s further said that during the current financial year, India’s economic growth rate will be from 9.3 percent.

Growth will happen at the rate of 7.9 percent in the next financial year
Apart from this, this rate may come down to 7.9 percent in the next financial year. Also, India’s economic growth rate is estimated to be around 6 percent in the medium term. After the second wave of Corona, the risks related to the financial system have reduced significantly and the economy has seen strength. Moody’s has given India a ‘Baa3’ sovereign rating, which is just one notch above the junk grade.

Sovereign rating was reduced last year
Let us tell you that last year Moody’s reduced India’s sovereign rating from Baa2 to Baa3. Moody’s had said that in view of the deteriorating economy situation due to the epidemic, Moody’s had downgraded the rating and the rating outlook was also negative, which has now been improved and stabilized.

Foreign investors take investment decision according to rating
On Thursday, Finance Ministry officials had a meeting with Moody’s regarding ratings. Presentation was given by the officials of the Finance Ministry in this meeting. Let us tell you that on the basis of Moody’s rating, investors from all over the world take the decision to invest in India. If the report is good, then there is a possibility of increasing foreign investment in India. Apart from this, it also helps in taking loans of Indian companies.

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