Moody's and Fitch predict India's BJP-led government may face difficulties in pushing major reforms due to its slim majority in the Lok Sabha.

Global rating agencies Moody's and Fitch predict that India's BJP-led government may face difficulties in pushing through far-reaching reforms due to its slim majority in the Lok Sabha. A BJP-only majority was lost, which could delay more aggressive economic and fiscal reforms, impacting progress on fiscal consolidation. Despite this, a focus on capital expenditure and gradual fiscal consolidation is expected to maintain robust economic growth.

June 05, 2024
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