Rating agency Moody’s on Thursday changed India’s outlook to positive from stable, saying that the government is taking steps to improve economic strength and stressed that a rating upgrade could follow in about 12-18 months times.

The US-based agency said in a statement that “India has grown faster than similarly rated peers due to favorable demographics, economic diversity and high savings and investment rates.

There is an increasing probability that actions by policy makers will enhance the country’s economic strength and in turn, the sovereign’s financial strength over the coming years, “Moody’s current rating on India is BAA3 which for stands below investment grade.

Chief Economic Advisor Arvind Subramanian tweeted that Moody’s India upgrade validates government’s reform thrust, better growth, macro outlook, budget strategy of public investment, fiscal discipline.

The benchmark BSE Sensex rose over 167 points in early trade on Thursday after rating agency Moody’s raised India’s rating outlook from stable to positive.

Besides, a firming trend at other Asian markets buoyed the sentiments.

The 30-share index, which had gained 750 points in the past four sessions, rose further by 167 points at 28 thousand 8 hundred and 75 with all sectoral indices, led by metals and IT gaining.

On similar lines, National Stock Exchange index Nifty moved up 43 points at 8,757.