Now every other day there is one rating agency lowering the growth outlook of Indian economy and after Fitch and CRISIL, joining the string other international rating agency Moody's Analytics too has revised down the GDP estimate for Asia's third-largest economy to 5.5% in 2012-13. While, pegging its growth forecast at sub-6 per cent it termed the Indian government as the 'single biggest factor' weighing on business confidence and the economic outlook of the country.
One of its senior economists said that 'there has been little policy response from either the Reserve Bank of India or the government and with global uncertainty dragging on; we see nothing on the horizon to lift the economy from its funk.'
It further said that the prime minister has one final opportunity to salvage his legacy. 'With two years left in office, Prime Minister Manmohan Singh must turn things around quickly or risk becoming a lame duck for the remainder of his term, leaving behind a legacy of missed opportunity.'
The report added that the wave of reforms through the 1990s that lifted GDP growth above 8 per cent have stopped as corruption scandals, poor electoral results, an obstinate coalition partner, and an obstructive opposition have all but eliminated the Congressâ€led government's mandate.