The rating agency, along with its peers, has been criticised by government agencies who accuse them of holding biases towards emerging market economies like India, and deliberately assign lower credit ratings despite a superior record.
Moody’s also revised India’s FY22 GDP growth forecast to 13.5 per cent, albeit it will come on a relatively lower base. In FY23, the growth will moderate to 6.2 per cent, the rating agency said. “Risk to growth forecast for India is tilted to the downside,” it added.
The agency lauded the government’s budget announcements and said recent developments in India is ‘encouraging’. The Union Budget has proposed a higher capex and larger borrowings for the upcoming fiscal year.
“Budget tilted towards supporting growth. Fiscal deficit in Budget above expectations, but deficit target is ‘realistic’. Government fiscal consolidation path is moderate,” Moody’s said.
