Welcoming the upgrade in India’s investment outlook to “positive” by global rating agency Moody’s, the finance ministry’s chief economic adviser Arvind Subramanian said it validates the government’s reform agenda.
“It confirms the fact that growth and macro-economic prospects of the country are improving,” he told reporters, adding that it also validates the strategy outlined in the Union Budget to increase public spending.
(Also Read: Moody’s changes India’s outlook to positive, affirms Baa3 rating)
Hoping for an outlook in India’s rating as well, the CEA however said the focus of the government will be on what is required to improve growth.
Maintaining that the inflation target of 5 percent to 5.5 percent for the year end will be met, Subramanian said the unseasonal rains that have resulted in crop damage will be a “temporary blip” on food prices.
He also said that the fiscal deficit target of 3.9 percent of the GDP for 2015-16 is more plausible.
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