Rating agency Moody’s Investors Service upgraded the sovereign rating outlook of India to stable from negative.

Highlights

• This rating was upgraded citing reduced risks from COVID-19 as well as negative feedback between real economy & financial system.
• Moddy’s has retained India’s rating at Baa3. It reflects the lowest investment grade rating.
• Moody’s further expects that real GDP will surpass pre-pandemic levels of 2019-20 in the year 2021 itself. This is because the ongoing economic recovery is picking up as the activity are broadening across sectors.
• Moody’s expects that 2021-22 will record a growth of 9.3% in GDP.

Moody’s had downgraded India’s sovereign rating to Baa3 from Baa2 in June 2020 with a negative outlook.