Global credit rating agency Standard & Poor’s Friday upgraded India’s sovereign rating to stable, two years after it had downgraded the country close to junk status.
It, however, warned that the rating could be lower if the reform agenda stalled over the next 24 months.
The revision in outlook comes ahead of Modi's high profile visit to the US, which among things is aimed at procuring investments. Modi is scheduled to meet top US corporates.The outlook revision gave a boost to the stock markets with the BSE Sensex shooting up by 158 points to 26,626.32.Finance ministry said it was satisfied S&P has acknowledged steps taken by the government, bankers rejoiced as it was a reflection of India’s sound external position.
"Our outlook revision indicates that we believe the current government's strong mandate will enable it to implement many of its administrative, fiscal, and economic reforms," S&P said in a statement.
The revision in outlook will improve investor confidence and Indian companies’ access to international funds. Modi's visit to the USis aimed at procuring investments.
