Rating agency Moody's has raised India's credit outlook to positive, while Fitch projected faster growth, raising hopes for an upgrade in its sovereign rating in the next 12-18 months. India's sovereign rating by Moody's stands at 'Baa3', the lowest investment grade and just a notch above 'junk' status, while it earlier had a stable outlook for the country. Fitch, which maintained its equivalent 'BBB-' rating with stable outlook, on the other hand projected 8 per cent GDP growth for the current fiscal, higher than 7.8 per cent estimate of the Reserve Bank of India. It also indicated positive rating action, if the Government follows its fiscal consolidation roadmap. Another agency Standard & Poor's also has a similar rating for India and it recently upgraded its outlook from 'negative' to 'stable'. The sovereign rating and outlook of a country are often used by foreign investors and global bodies to gauge its investment climate. They also have a bearing on the cost of overseas borrowing by domestic companies. On the outlook upgrade, Finance Minister Arun Jaitley said the action is significant, but the Government has to do more to further boost economy. RBI Governor Raghuram Rajan said it is a positive perception of what they have done over the past few quarters. He, however, cautioned that the government and regulators should not lose sight on what more needs to be done.