After Moody's upgrade, doubters should introspect: Jaitley

New Delhi: Welcoming India's improved credit rating by Moody's Investors Service, Finance Minister Arun Jaitley on Friday said, "It is a recognition and enforcement of reform process which has gone on in India, particularly in the last 3-4 years."

Addressing the media at the national capital, Jaitley said a number of structural reforms that have taken place in these years have put India on a high trajectory growth curve. 

The finance minister said the upgrade by Moody's has come after 13 years.

Read: Boost for Modi: Moody’s upgrades India’s credit rating for 1st time in 13 yrs

He said, "We welcome this upgrade, we believe that it is a belated recognition of all the positive steps which have been taken in India in the last few years, which has contributed to strengthening of Indian economy." 

Jaitley said that the improved credit rating is encouraging and that there is an international recognition. He said the recognition firms Government's determination to follow the track that they have embarked upon.

Crediting demonetisation and digitisation the finance minister said, "The fact that a series of steps including demonetisation, which are now taking Indian economy to a greater formalisation and digitisation, something which is being universally acknowledged." 

The finance minister said the world has recognised Goods and Services Tax (GST) as one of the most significant reform steps taken in the history of Independent India.

For three years in a row, India is the fastest growing economy among all major economies, Jaitley said. He went on to add, “If you look at our track record of three years, it has been one of the better records in Indian history as far as fiscal discipline is concerned, and we intend to move on that track.”

Attacking critics for targeting the Government for demonetisation and GST the finance minister said, "Many who had doubts in their minds about India's reform process would now seriously introspect on their positions itself." 

US-based Moody's on Friday upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook citing improved growth prospects driven by economic and institutional reforms. 

The rating upgrade comes after a gap of 13 years. Moody's had last upgraded India's rating to 'Baa3' in 2004. 

In 2015, the rating outlook was changed to 'positive' from 'stable'.

The 'Baa3' rating was the lowest investment grade - just a notch above 'junk' status.

"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," Moody's said in a statement.