Hailing the decision, FM Arun Jaitley said that the government has become extremely encouraged over the upgraded rating.
Union Finance Minister Arun Jaitley on Friday hailed Moody's move to upgrade India's credit rating from 'Baa3' to 'Baa2'. Jaitley said that the Moody's rating is an endorsement of the economic reforms introduced by the Prime Minister Narendra Modi led government.
Hailing the decision, he said that the government has become extremely encouraged over the upgraded rating.
The agency has changed India's outlook to stable from positive.
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.
Listing out the achievements, the Finance Minister said that India has become the fastest economy among the emerging nations and the country is going through strong fundamental changes.
He also said that the government plan to recapitalise the banking sector has also helped the economy to get back on track.
"Fiscal prudence has helped India to get Moody's upgrade", the finance minister said.
Lauding the government's decision of implementing demonetization, FM Arun Jaitley said that the demonetization has got the global recognition. "GST has been regarded as the landmark reform of the Indian economy", he further added.
"Key elements of the reform program include the recently-introduced Goods and Services Tax (GST) which will, among other things, promote productivity by removing barriers to interstate trade; improvements to the monetary policy framework; measures to address the overhang of non-performing loans (NPLs) in the banking system; and measures such as demonetization, the Aadhaar system of biometric accounts and targeted delivery of benefits through the Direct Benefit Transfer (DBT) system intended to reduce informality in the economy," the global credit rating agency has said in its statement.
The upgrade comes on the heels of a recent survey by Pew Research which shows the Prime Minister Narendra Modi still remains "very popular". The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004.
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 "It's an endorsement of our reforms: FM Jaitley on Moody' s upgrade")
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