Part of the rating agencies investors services, Moody's Investors Services has raised the rating on debt parameters of Indian currency, rupee. It is below the investment grade at "Ba1" and has shown a positive outlook.

It has happened, said Moody's because of the improvement on the public finances front which are a result of the reform measures followed by the government.

Said Aninda Mitra, Moody's, vice president and lead sovereign analyst for India, "The upgrade was prompted by the, Indian government's adoption of a medium-term fiscal consolidation strategy, which is supported by, a broadening structural reform program."

This is different from what the other rating agencies have done. Fitch and S&P have both put Indian rupee in the investment category which also means that it is part of the speculative grade.

But in an answer to this, Moody's said that is considering of combining India's foreign as well as local currency ratings if the inflationary pressures normalize.

What ever the case, the upgrade has narrowed the gap between the local currency debt and foreign currency ratings for rupee. Earlier it was at "Baa3' -- the lowest investment grade rating.