The note said that the Centre may slow down some of the government spending over the next two quarters, which may preserve the trend of fiscal consolidation. Aside of that, the GST reform may also impact the government's efforts to reduce debt.
The Moody's note said India's real GDP growth may slow by around 0.3 percentage points from the current forecast of 6.3 percent FY26.
A source from Moody’s Ratings told Moneycontrol the agency is unlikely to change the methodology of assessment. "We've a fixed parameter for credit ratings of sovereigns. Not sure, if we are flexible in changing our sovereign rating methodology," the person added.
30-year Treasury yields top 5% amid growing concerns over deficits, fiscal policy, and inflation.
Dismissing the latest assessment of the US economy, the White House official wrote, 'Nobody takes his analysis seriously.'
A persistent increase in tensions could also impair Pakistan’s access to external financing and pressure its foreign-exchange reserves, says Moody's
The rating firm expects the relaxation in LCR guidelines to add some capacity, potentially boosting loan growth by 100 to 150 basis points.
Analysts feel that while the MFI sector has been grappling with asset quality stress, the short-term nature of these loans suggests that the worst could be over, unless macroeconomic conditions worsen.
'We expect the operating environment for banks to remain favorable, helped by government capital expenditure, tax cuts for middle class income groups to boost consumption and monetary easing,' says Moody's
Over the past 12 months, high steel imports into India have already dampened prices and earnings of steel producers in India, said Hui Ting Sim, assistant vice president at Moody's Ratings.
Inflation should moderate toward the RBI’s target in the coming months as food prices ease amid higher sowing and adequate food grain buffer stocks, says the rating agency
Trade and investment flows will be further diverted away from China, the rating agency says
622 million people or 44 percent of the population in India will be prone to inland flooding, another 48 million were prone to coastal flooding.
Moody's lowered india's Inflation forecast to 4.7% for 2024 from 5% projected in June
The two-notch rating upgrade is due to the automaker’s revenue growth, improving profitability and debt reduction, the agency said
The central bank released a set of preliminary guidelines last month, including suggesting that banks will be required to allocate an additional 5% reduction in the stability of retail deposits that have internet and mobile banking access
The rating firm predicted Indian economy to grow 6.4% in 2025; inflation to ease to 5.2% in 2024 and 4.8% in 2025
Modi's Bharatiya Janata Party (BJP) won 240 seats on its own, 32 short of the halfway mark in the 543-member decision-making lower house, with the National Democratic Alliance (NDA) which it leads securing a total 293 seats.
According to Moody's, this year's interim Budget targets capital expenditure allocation of Rs 11.1 lakh crore, or 3.4 percent of GDP in 2024-25, 16.9 percent above the 2023-24 estimates.
Moody’s rates India at its lowest investment grade ‘Baa3’ with a stable outlook.
'Banks' funding and liquidity will be stable. We continue to expect strong government support for banks in times of need,' the ratings agency said.
The rating agency expects all of TML's businesses to continue to deliver on their strategic growth priorities while maintaining a balanced financial policy that focuses on achieving net-zero automotive debt by March 2025, Moody's stated
The ratings agency said it expects policy continuity after the general election due by May and a continued focus on infrastructure development.
In the midst of robust economic growth, Moody's Investors Service noted on Thursday that the government's commitment to its fiscal reduction targets is strongly conveyed in the interim budget for 2024–25.
India’s rating has remained unchanged at the lowest investment grade even when it has become the fifth largest economy in the world.