Modiji and Moody's jodi failed to to gauge mood of the nation: Congress reacts to India's credit rating upgrade

The Congress accused the Modi government of "clutching at straws" to reclaim the lost credibility, and said it and rating agency Moody's have failed to gauge the mood of the nation.

Congress communications in-charge Randeep Surjewala also sought to downplay Moody's rating upgrade of India, saying the same agency had miscalculated US subprime mortgages before the economic meltdown.

"After destroying India's economy, the Modi government is clutching at straws to claim lost credibility," he said on Twitter.

"Modiji and Moody's 'jodi' (duo) have failed to gauge the mood of the nation," he said, adding that hunger deaths, agri distress, job losses, lowest credit ratings, rising prices, plunging exports, flawed GST, demonetisation disaster, stagnant growth are the real indices to measure it.

Taking a dig at Finance Minister Arun Jaitley, Surjewala said, "Mr Jaitley, do remember that Moody's, S&P and other rating agencies defaulted in rating American sub-prime mortgages...before the economic meltdown." "Lesson is stop acting and get your act together. Shun arrogance and listen to the trade and industry," he told the finance minister.

The Congress leader said the Modi government relied upon a World Bank report of Delhi/Mumbai to claim all is well and quoted a PEW survey of 2,464 people to claim victory.

"At this pace, Modiji should be fighting next election abroad," he said, taking a dig at the prime minister.

"Mr Jaitley, history teaches us valuable lessons. You ignore them at your peril! As greed, collusion and crony capitalism sank banks and Wall Street, please read who contributed to wiping away people's money.

"Hope you are not following the same trajectory!," he said. Moody's Investors Service today raised India's sovereign rating for the first time in 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms.

The US-based agency changed its rating outlook to 'stable' from 'positive', saying the reforms will help stabilise rising levels of debt. Top ministers and officials of the government hailed the rating upgrade by Moody's as "long overdue" and hoped others such as S&P and Fitch will follow suit as it presses ahead with steps to ratchet up growth.

India's rating upgrade reflects growth story: NITI Aayog

India's credit rating upgrade by Moody's is a reflection of the country's growth story, Niti Aayog Vice Chairman Rajiv Kumar said today and expressed hope that other global agencies such as S&P and Fitch would follow suit.

The US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms.

"Moody's upgrading India's Ratings is a reflection of India growth story and sound economic principles for a #NewIndia. Hoping others will follow," Kumar said in a tweet.

Former Economic Affairs Secretary Shaktikanta Das said in a tweet: "Moody s upgrade India's credit rating after 13 years. A clear recognition of economic & institutional reforms; well paced shift towards formalisation of the economy; improvement in business climate;positive growth outlook."

In 2015, the rating outlook was changed to 'positive' from 'stable'.

The 'Baa3' rating was the lowest investment grade -- just a notch above 'junk' status.

In a statement this morning, the credit ratings agency said: "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."

It cautioned however that high debt burden remains a constraint on the country's credit profile.