FDI norms relaxation by India credit positive: Moody's

Moody said that, "The announcement is credit positive because it demonstrates a continuation of reform momentum and paves the way for private investment and a boost in productivity.”

Overall Moody provided India a "Baa3" rating, the lowest investment-grade rating, with a "positive" outlook. Photo : IANS

India’s decision in easing the Foreign Direct Investment norms (FDI) in host of sectors, is a positive move for the country's sovereign ratings, said Moody's Investors Service.

Moody said that, "The announcement is credit positive because it demonstrates a continuation of reform momentum and paves the way for private investment and a boost in productivity.”

On 20 June, the government along with PM Narendra Modi relaxed FDI norms in sectors such as civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route.