India ratings upgrade by Moody’s validates govt agenda: CEA Arvind Subramanian

The finance ministry's chief economic adviser Arvind Subramanian welcomed the upgrade in India's investment outlook to "positive" by global rating agency‎ Moody's...

Written by Surabhi

New Delhi

Updated: April 9, 2015 15:55 IST

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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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This article was first uploaded on April nine, twenty fifteen, at twenty minutes past two in the afternoon.