Moody's upgrade of India

Most analysts think that Moody's upgrade is merited by the raft of reforms we have seen under the Modi government. I disagree. It's certainly true that the reforms have improved India's economic fundamentals. They have brightened the prospects of India growing at over 7.5%. But, I would argue that, even without the reforms, India's ability to service its debt has not been in doubt. In 2007- 17, which is a period consequent to the global crisis, we have seen a decline in India's debt to GDP ratio in the face of an adverse external environment. I would, therefore, argue, that this record merited an upgrade even without the reforms we have had recently.

More in my BS article, Rating upgrade was long overdue.