Why Moody's Raised India's Credit Rating

The video discusses the upgrade of India's sovereign rating to AA2 with a stable outlook, based on economic reforms and growth potential. It addresses concerns about the government's ability to implement these reforms and the challenges faced, such as demonetization and GST. The potential for a downgrade is linked to fiscal consolidation risks, while successful reforms could improve the credit profile. The combination of measures like GST, demonetization, and business environment improvements are key to the rating decision.

What was the new sovereign rating given to India by Moody's?

• BB2 with a stable outlook

• AA2 with a stable outlook

• BW3 with a positive outlook

• AA1 with a negative outlook

Which economic reforms were mentioned as facing implementation challenges?

• Business environment improvements and fiscal framework

• Flexible inflation targeting and tax base broadening

• Direct benefit transfers and FDI

• Demonetization and GST

What was the revised GDP growth forecast for India due to reform challenges?

• 8.1%

• 5.9%

• 7.5%

• 6.7%

What could potentially lead to a downgrade of India's sovereign rating?

• Negative surprises in fiscal consolidation

• Faster fiscal consolidation

• Increased foreign direct investment

• Improved business environment

Which specific reform was highlighted as improving India's business environment?

• GST implementation

• Doing business rankings improvement

• Direct benefit transfers

• Demonetization