New Delhi, Oct 30 Against the backdrop of controversies like on beef, Moody’s Analytics today cautioned Prime Minister Narendra Modi that the country may lose domestic and global credibility if he doesn’t rein in the members of his party.
In a report titled India Outlook: Searching for Potential, Moody’s Analytics said for the country to reach its growth potential it has to deliver the promised reforms.
The ruling BJP does not have a majority in the Rajya Sabha and crucial reforms bills has been met with an obstructionist opposition.
Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility, Moody’s said.
It projected that India’s GDP growth for September quarter at 7.3 per cent, while for the full fiscal it would be 7.6 per cent.
As regards interest rates, it said low rates will buttress the economy in the short-term but reforms are needed to reach long-term potential growth.
