New Delhi: Rating agency Moody has stated that the Indian economy is unlikely to accelerate even if “business- friendly†Narendra Modi were to win 2015 elections. The report titled ‘India underwhelms’ estimates the economy grew at 4.8% in the third quarter of this fiscal year.
Moody’s senior economist Glenn Levine has cited weakness in the real economy as the reason for his pessimism. Levine, however, said the economy is better placed to weather the US Fed tapering and other downside risks in 2014.
He said although India stood a chance of better governance with Narendra Modi it would still be a long road back to growth for the Indian economy.
The report concludes that the economy would likely expand 4.8% in October-December, the same pace as the first two quarters and below the potential growth rate of 6.5-7%, adding that 2014 had little on the horizon to lift the economy.