In a statement, S&P said India’s rating reflects its strong GDP growth, sound external profile and improving monetary credibility. In January 2007, S&P had raised sovereign credit ratings on India to ‘BBB-’ with a stable outlook, from ‘BB+’. Moody’s had in 2015 changed rating outlook to ‘positive’ from ‘stable’. “However, confidence and GDP growth in 2017 appear to have been hit by the sudden demonetisation exercise in late 2016. The removal of barriers to domestic trade tied to the imposition of GST should also support GDP growth.

Source: Hindustan Times November 24, 2017 12:07 UTC