Ratings upgrade to bring more investment: MoS Jayant Sinha

Minister of State for Civil Aviation, Jayant Sinha today said that the Moody's upgrade was long overdue and was due to the recent economic reforms taken by the Government of India.

Sinha said that results of many reforms are yet to reflect which will further up the ratings.

Speaking to ET Now, Sinha said that there is a transition in the country's economy which is "shifting from 3rd to 4th gear".


He added that the ratings upgrade will pull down the cost of debt and hence more investment will pour into the economy, resulting in completion of stalled projects.

His comments came hours after Moody's upgraded India's ratings to Baa2 from Baa3 after a gap of 14 years.

The ratings upgrade was welcomed by analysts but S&P said that India's fiscal is still weak.