India’s finance ministry expressed optimism on Friday, stating that it expects Moody’s to upgrade the country’s rating. The ministry official, rating speaking on condition of anonymity, highlighted India’s strong growth prospects, sovereign rating
Declining inflationary pressures, and other robust macroeconomic indicators as favorable factors for the rating upgrade.
Since 2017, Moody’s has maintained India’s sove rating at Baa3 with a stable outlook. An upgrade in the sovereign rating would reduce borrowing costs for India, facilitating access to capital from international markets.
India’s economy is projected to grow at a rate of 7.5% in the current financial year, ending on March 31, 2023.
The central bank has forecasted an average inflation rate of 6.1% for the same fiscal year.
According to the finance ministry official, India’s solid economic fundamentals position the country well to withstand global economic challenges, including the ongoing conflict in Ukraine and escalating commodity prices.
