Global rating agency Moody’s on Tuesday said India’s interim budget is in line with the policy assumptions that underpin the government’s Baa3 rating with a stable outlook.
The global rating agency has, however, cautioned that India’s fiscal position remains “weak”. “Moody’s stable outlook on India’s Baa3 sovereign rating incorporates the macro-economic risks posed by the government’s high deficit and debt ratios as well as its recent efforts to control the fiscal deficit through ad hoc measures,” it said in a statement.