"Budget is modestly credit positive for the sovereign, since it indicates a continued commitment to gradual fiscal consolidation by bringing down fiscal deficits to 3 percent over the next two years," Atsi Sheth, a Moody's Associate Managing Director for the Sovereign Risk Group, said in a note.
Moody's has said India's credit profile will be unaffected by a small slippage in fiscal deficit target as it expects the government to continue fiscal consolidation and target lower deficits every year despite headwinds from global slowdown.
Moody's domestic affiliate ICRA Ratings too expects growth in gross value added at basic prices to be at 7.7 percent in 2016-17, from 7.2 percent in 2015-16. Moody's has a rating of Baa3 with a positive outlook on the country
While maintaining that it expects the country to be the world's fastest growing major economy this year, the rating agency believes that the "market trends will depend on whether inflation remains under control and corporate profits revive."
Ratings agency Moody's has downgraded the country's 2015-16 gross domestic product (GDP) growth target to 7 percent, from 7.5 percent earlier.
Even in years when drought doesn't actually occur, the annual uncertainty around agricultural output constrains monetary policy making as highlighted this year, the report says.
I am in the camp that believes the near-term problem for India was macro-economic; it was the current account deficit, it was the fiscal deficit, it was inflation, that has been handled in the near-term, said Atsi Sheth of Moody's Investors Service.
With the government managing to pass 25 legislations in the Budget Session experts are indeed quite happy with the government's reforms drive. But Atsi Sheth of Moody's believes that it will take one or two years for the government to actually implement them in entirety.
Meanwhile, Moody's, which revised India's "Baa3" sovereign rating outlook to "positive" from "stable" last month, said its outlook reflects a 2-5 year horizon, rather than near-term growth outlook.
Depending on the band, carriers will have to pay as much as 33 percent of their final bid within 10 days of the auction's conclusion and the rest in 10 annual installments starting in 2017.
Projecting a 7.5 percent GDP growth next fiscal, Moody's sovereign credit analyst Atsi Sheth in a note pegged average retail inflation at 6.5 percent at end-March 2016, up from 4.6 percent this fiscal.
Moody's will be watching out for the measures that can help reduce general deficit to around 4-5% level from current 7%. Atsi Sheth says other Baa3 rated nations have a general deficit closer to the 3 percent mark.
In an interview to CNBC-TV18, Atsi Sheth, Senior Vice President at Moody‘s, said that IIP and CPI numbers are almost in line with the trend. Moody's retains Baa3 with a stable outlook on India.
Atsi Sheth, vice-president - senior analyst, sovereign risk group of Moody's says growth will be significantly higher in Q1, but there are risks to agricultural output and the services sector in this quarter and hence the conservative expectation.
Ratings agency Moody's says that it maintains a stable outlook for India. Though Moody's is concerned about the government's populist measures, it does not think that these policies warrant a downgrade yet.
Atsi Sheth of Moody's Investors Service warns that the high inflation could do a lot of damage to both growth as well as savings.
In an interview to CNBC-TV18, Atsi Sheth, Vice-President - Senior Analyst, Sovereign Risk Group of Moody's Investors Service spoke about current account deficit number.
A higher subsidy burden and lower growth will weaken the country's fiscal metrics. Moody's, however, said the country's current reserves can finance the current account and external debt payment needs.
In an interview to CNBC-TV18, Atsi Sheth of Moody's Investor Service spoke about her expectation from the food bill and also spoke about the market in general
Atsi Sheth of Moody's Investors Service says that the GDP growth forecast may remain at 5.5 percent with a downside risk of reaching at 5 percent. However, she told CNBC-TV18 that the outlook towards the economy was 'stable' currently.
Atsi Sheth of Moody's expects GDP growth at 5.7 percent for FY14. She feels the pressure on the rupee is likely to continue for the rest of the year.
Global rating agency Moody's has said India's sovereign outlook is stable and does not warrant any action on the country's credit rating in the next 12-18 months.
The fiscal deficit in the first seven months of 2012-13 stood at 71.6 percent of the Budget Estimates. This was slightly better than 74.4 percent in the same period a year ago. This improvement was on the back of some tightening on the expenditure front.
Moody's has reiterated a stable outlook on India. The rating agency seems a bit more positively inclined than S&P and Fitch which have been firing some really negative salvos on Indian macro.
Atsi Sheth, Senior Analyst, Sovereign Risk Group, Moody's Investors Service feels that though there are negative trends but those will not sustain for long period. that outlook on India's Baa3 rating remains stable.