On April 9, 2015, Moody's, an international organization that rates sovereign nations' creditworthiness, raised India's outlook from "stable" to "positive," praising the government's recent policy actions. The Baa3 grade given to India, on the other hand, remained unchanged. In a statement, Moody's said it might improve India's rating in the next 12-18 months if the government's policy measures succeed in boosting the country's economic growth rate. Prior to Moody's report, the International Monetary Fund (IMF) predicted that India will surpass China as the fastest expanding developing economy in 2015-16, with a 7.5 percent growth rate. In light of the government of India's reform measures, Moody's raised India's outlook from stable to positive, indicating to investors that the Indian economy will develop at a faster rate in the coming months. The quicker development of the Indian economy over the last decade has been attributed to a high saving and investment rate, economic variety, and favorable demographics. Inflationary pressures, sporadic balance-of-payments pressures, and an uncertain regulatory environment, however, had produced some instability, which had slowed the economic process. These issues were mostly to blame for the credit rating agencies' lower investment grade.

Shivangi Ojha

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