The cautious view from the ratings agency is a warning sign for global policymakers who are relying on emerging economies, particularly in Asia, to drive global growth in the coming years.
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The Fed hiking interest rate may not have an alarming impact on the Indian rupee unlike its other Asian peers, says Rahul Ghosh of Moody's.
In its December 2015 issue of 'Inside India', the agency however, said a broad-based and sustainable revival in the private sector capital expenditure cycle will likely take longer to materialise.
In its latest 'Inside India' report, Moody's Investors Service said the consensus view on India's economic growth prospects is relatively optimistic - in line with Moody's baseline scenario of economic expansion of 7.5 percent in the current fiscal.
Moody's further said that the emergence of a strong coalition as a result of the upcoming general elections in India would not act as a near-term game changer for Indian creditworthiness.