Pace of reforms may slow down: Rating agencies

New Delhi, June 5

Two global rating agencies today expressed doubt over the pace of “reforms” after it emerged that the BJP will now have to bank heavily on allies to run the government.

“It appears the BJP-led NDA is likely to form the next government, returning Prime Minister Modi for a third term, but with a weakened majority that could pose challenges for the more ambitious elements of the government’s reform agenda,” said Fitch.

Moody’s expected policy continuity in some sectors but its note pointed out that “the NDA’s relatively slim margin of victory, as well as the BJP’s loss of its outright majority in Parliament, may delay more far-reaching economic and fiscal reforms that could impede progress on fiscal consolidation.”