Moody’s, a global rating agency, has raised India’s rating outlook from its previous “negative” outlook to “stable”, while confirming its Baa3 rating.
This result indicates that the Indian economy is on an upward trajectory.
The rating agency said the economic recovery was progressing as operations gradually increased and spread to other sectors.
Moody’s downgraded India’s rating from Baa2 to Baa3 last year, noting that it may face difficulties in implementing policies to mitigate long-term risks of low growth and worsening financial conditions.
The assessment firm said in a statement that despite the risks posed by the high sovereign debt burden, improvement in the economic situation would gradually reduce anxiety.
The country’s real GDP for the current fiscal year is higher than 2019 and expects 9.3 percent growth in 2021-22 and 7.9 percent in 2022-23.
“The negative risks to development from subsequent corona virus infection waves are mitigated by vaccine rates and the more selective use of restrictions on economic activity, which is seen during the second wave,” it said.