Global rating agency Moody’s, in its latest quarterly Global Macro Outlook report , has highlighted that India to witness sustained robust growth over the next two years. Currently, the rating agency has assigned 'Baa3' rating with a stable outlook on India, which is lowest in the investment grade.
On global front, Moody's highlighted that the US growth is likely to accelerate in coming future on the back of rising investment and consumer demand. For the G-20 economies, the rating agency is expecting a GDP growth of around 3 percent in 2015 and 2016, after notching up 2.8 percent in 2014.
The country had two consecutive fiscals of sub-5 per cent growth, and the economic growth prospects have been looking up since the first quarter of current fiscal when GDP growth accelerated to 5.7 percent y-o-y.
Moody's had expected that India’s GDP growth to touch 5 percent in 2014 and accelerate in 2015. It also highlighted that the decision to deregulate the diesel prices and hike the natural gas prices are credit positive for India as it would improve the fiscal discipline of the country. Moody's also appreciated the recently launched ‘Make in India’ campaign which saw the government initiating some reforms in the labour and investment policies front and government’s financial inclusion measures, infrastructure development initiatives, clarity around inflation targets, as well as banking and energy sector reforms.