The current financial year is a 'transitional' one, bearing the impact of reforms like demonetisation and GST
Moody's has also raised India's long-term foreign-currency bond ceiling to Baa1 from Baa2, and the long-term foreign-currency bank deposit ceiling to Baa2 from Baa3.
The Indian economy grew at its slowest pace in three years between April and June at 5.7 percent. A Reuters poll conducted in October showed economists predict South Asia's largest economy will grow by 6.7 percent in the fiscal year ending March 2018.
The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004. In 2015, the rating outlook was changed to 'positive' from 'stable'.
The opposition is baying for the government’s blood over demonetisation and GST. The first is done and over with. But its effects are not yet over. The second has been modified to assuage large sections of the population.
India's current account deficit (CAD) rose sharply to USD 14.3 billion -- 2.4 per cent of GDP -- at the end of first quarter of 2017-18.
India came under the spotlight after an increase in the "scale and persistence" of its buying up other nations' money, the Treasury said in an October report outlining the foreign exchange policies of the U.S.'s major trading partners.
Such a scenario calls for "proactive measures" from government and the recent infrastructure building efforts will help, it noted and said "employment growth has not kept pace with economic growth."
"In the first quarter GDP grew at 5.7 per cent,causing a lot of heartburn, but we strongly believe that the second quarter growth is likely to trend higher and might be in the lower end of 6-6.5 per cent band with an upward bias," SBI Research said in a report today.
National Bureau of Statistics Deputy Head Li Xiaochao said on Monday there had been significant improvement in the long-standing discrepancy between national and regional GDP data.
So financial markets were stunned this week when the government unveiled a plan to pump a larger-than-expected $32.4 billion into state-run lenders, sending Indian equity markets soaring to record highs.
Chouhan, in his interaction with the business community here, lauded decisions like the demonetisation and GST taken by the Indian government.
The government will not solely pursue economic growth and will emphasise the quality of its growth, Yang Weimin, vice minister of the Office of the Central Leading Group on Financial and Economic Affairs, told a news conference.
The government yesterday announced a capital infusion of Rs 2.11 lakh crore in state-run banks over a period of two years, which includes recapitalisation bonds, budgetary support and equity dilution.
Asia's third-largest economy will grow at 6.7 percent in the fiscal year ending March 2018, the slowest since the new methodology of measuring gross domestic product (GDP) was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists.
The Council's latest "City Travel and Tourism Impact" report shows that Asian cities will be at the forefront of tourism growth over the next decade, and that's especially true for those in China.
"There are doomsday predictions currently that government is going to have a big revenue slippage in 2017-18 which may impact the headline fiscal deficit numbers. However, such projections flunk the test of logical reasoning and are grossly misconstrued," the report said.
The growth rate held steady from a 6.9-per cent increase in the first half of this year and is well above the government's target for the year of 6.5 per cent.
Presenting the work report of his five year tenure to the week-long Congress of the ruling Communist Party of China (CPC) here, Xi who is set to head the party and the military for another five years said, "the economy has maintained a medium-high growth rate, making China a leader among the major economies."
Prime Minister Narendra Modi's government has already used up nearly all of its budget for the current fiscal year and tax revenues are expected to fall far short of initial expectations. At the same time economic growth has slowed, sparking calls for more stimulus.
According to the global financial services major, global economic growth is expected to stay positive and accordingly exports are likely to remain supportive going ahead.
According to the Japanese financial services major, consumer firms are expected to report average net sales growth of 8.6 per cent year-on-year with EBITDA growth of 8.4 per cent in the second quarter of this fiscal. Growth in India's consumer sector particularly the household and personal care segment was held back in recent quarters largely due to macro issues.
While China produced forecast-beating growth of 6.9 percent in the first half, many economists and investors had expected its momentum would start to fade in the latter part of the year.
They analysts said the slippage will be on lower revenue collections through Excise duty cuts, lower telecom collections, lower RBI dividend transfer and also higher expenditure, where government has front-loaded spending and a possible stimulus to boost domestic demand.
The International Monetary Fund yesterday also lowered India's growth projection to 6.7 per cent in 2017, 0.5 percentage points less than its previous two forecasts and slower than China's 6.8 per cent.