India's upgradation by S&P is result of successful implementation of policies: Piyush Goyal
May 30, 2024
New Delhi [India], May 30 : Welcoming the revision of India's outlook in S&P Global Ratings from stable to positive, Union Minister Piyush Goyal said it is a rightful recognition of PM Modi's effective management of the economy.
He said, "I believe S&P rating India from positive to stable is a rightful recognition on PM Modi's effective management of the economy. It shows Modinomics works, and Modinomics is successful."
On Wednesday, S&P Global Ratings changed its rating outlook for India from stable to positive.
S&P noted that the country's economic development is positively affecting its credit metrics. The rating agency expects solid economic fundamentals to sustain the growth pace for the next two to three years.
"I am delighted that standards and poor has upgraded India's sovereign rating from stable to positive after 14 years largely due to the successful implementation of several measures taken over the last 10 years where India has moved from the fragile 5 economy to the world's fastest growing large economy amongst the top 5 in the world," Goyal told ANI.
"We have seen the last 10 years a country moving out of the week fundamentals with high inflation, high interest rates, no levels of growth, no foreign currency reserves, and a sense of despondency which prevailed in 2014," he further added.
Goyal said that the economy is changing with a strong macro-economic fundamentals adding that the country's foreign exchange reserves stands around USD 650 billion, inflation over the the last 10 years has been modest. Increasing trade contributions, and low fiscal deficit continuosly on the decline indicate the strong fundamentals of the economy.
On Wednesday, reacting to the S&P's move, Finance Minister Nirmala Sitharaman took to social media platform X and said it "reflects the country's solid growth performance and a promising economic outlook."
The government has long been a critic of the methodologies adopted by credit rating agencies, characterising global rating agencies as opaque and potentially discriminatory against the country.
Finance Ministry, in December last year, highighted the biases of the rating agencies by issuing a document titled "Re-examining Narratives: A Collection of Essays," written by Chief Economic Advisor V Anantha Nageswaran.
