"Moody's India upgrade validates government's reform thrust; better growth, macro outlook; budget strategy of public investment and  fiscal discipline... It confirms the fact that growth and macro-economic prospects of the country are improving," Subramanian told reporters here.
    
 The CEA also expressed hope that the rating agency will upgrade India's rating from 'Baa3' currently. It signifies the lowest investment grade -- just a notch above 'junk' status.
     
"The focus of the government is what needs to be done for the sake of economy and we hope for an investment upgrade. But that will not drive our policy going forward," Subramanian said.
    
In a big vote of confidence in the Narendra Modi-led government, Moody's raised India's credit rating outlook to 'positive' and said an upgrade in its sovereign rating is also possible in the next 12-18 months.
    
Subramanian said that unseasonal rains that have resulted in crop damage will be a temporary blip on food prices.
    
 "On agricultural prices, I think there is a blip due to unseasonal rains. The expectation is that it will not sustainably affect medium term inflation, especially if the forecast for monsoon this year is good, I think that should have an offsetting effect," he said.
     
On government's new GDP methodology, he said: "We have to work with these numbers. I think the process has been fantastic but there are some numbers which we need to understand better like the GDP numbers."
     
Subramanian expressed hope that the government will achieve current fiscal year's growth target, which is 8-8.5 percent.
     
"We are now more confident of achieving the current year's growth target," he said.

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