VCCircle

If anyone is looking for another reason to invest in India, here is one. Standard & Poor's Ratings Services has raised India's sovereign credit rating to investment grade. That's a big deal since India will move up in ranks as a favourite investment destination.

S&P's rating will especially boost investments from investors who look at investment-grade paper. Why has S&P done the upgrade? It cited India's strong economic prospects and external balance sheet, deep capital market and an improving fiscal situation in raising the rating to the lowest rung of investment grade at "BBB-/A-3" from a speculative grade "BB+/B".

Indian finance minister P Chidambaram has welcomed the move. "I am happy. It is an acknowledgement of India's improving macroeconomic stability and strength." The rating agency has however asked for a host of economic reforms like bringing down government debt and the interest burden etc.

Do you think this rating upgrade will boost investment to India?