This, according to the experts, would also help increase the attractiveness of Indian bond market. Even as most investors, fund managers and CEOs gave a thumbs-up to the move by the global agency, some differed.
"In the event the Central Government is able to manage its finances well and stick to the fiscal consolidation roadmap in its Budget 2018-19, rating upgrades by other rating agencies should follow", said the PwC economist. FICCI in a statement said that the positive impact of all these measures will be seen in the next few years and we see India moving towards a higher growth trajectory.
Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, said that the upgrade "underlines the efficacy of the bold structural reforms".
"It clearly shows that the economy is turning the corner and poised for a big leap forward, highlighting the enormous potential that India offers as a global investment destination".
"The decision to upgrade the ratings is underpinned by Moody's expectation that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term", a Moody's Investor Service release said. "The cost of foreign borrowings will automatically come down, which in itself is a big benefit for the country. This should help keep interest rates in India benign over an extended period of time", said Mr. Banga. "Moody's remains bullish on reforms done by the government and is confident of India's growth potential", said BJP president Amit Shah. "Moody's mood changes to upgrade India rating". Last year, India lobbied hard with Moody's for an upgrade, but failed. "Let's hope that poor standards also gets richer", Mr Shah said on Twitter.
Citing Moody's, the BJP chief said the reforms initiated by the government yielded positive results in all segments of the economy.
However, there were some experts that differed.
On fiscal front, the report said the markets would now definitely factor in a higher fiscal deficit in 2017-18.
"MoodyÂ's ratings upgrade is a testimony of the fact that the government's roadmap of fiscal reforms is on the right path". "Mr Jaitley, do remember that Moody's, S&P and other rating agencies defaulted in rating American sub-prime mortgages.before the economic meltdown".