MUMBAI The opposition Bharatiya Janata Party's resounding election win is credit positive for India as it boosts the prospect that a stable government will address the country's economic challenges, Moody's Investor Service said on Monday.
Moody's rates India "Baa3", the lowest investment-grade rating with a "stable" outlook.
"The completion of the election will allow stalled policies relating to the corporate and infrastructure sectors to resume, a credit positive for the country's corporates," said Vikas Halan, vice president and senior credit officer at Moody's, said in a statement.
Rival rating agency Standard & Poor's also rates India at the lowest investment grade, but with a "negative" outlook.
Investors are increasingly betting on a turnaround in the Indian economy after the Narendra Modi-led BJP and its allies won a more decisive-than-expected 334 seats in India's 543-member lower house in vote counting on Friday.
"Closer co-ordination between the central and state governments on clearances for mega projects and land use, two proposals outlined in the BJP's manifesto, would address investment delays," Halan wrote.
India's economy is growing at less than 5 percent, its slowest in a decade.
(Reporting by Suvashree Dey Choudhury; Editing by Gopakumar Warrier)
Trending On Reuters
Next year, Dr. Ketan Desai is slated to head the World Medical Association (WMA), guardian of the Hippocratic Oath. The WMA is standing by him, even as he battles conspiracy allegations in two Indian courts. Desai has been facing allegations that he conspired in 2009 to have the Medical Council recommend that a private medical college be allowed to add more students. Full article