Journalism of Courage
Reflecting macroeconomic challenges over the next 12 months,Moodys expects challenges for Indian non-financial corporates to continue in 2014.
Indias GDP growth to remain weak at 5.5 per cent in the fiscal year ending March 2015,as elections in mid-2014 will delay reforms needed to revive the economy, Moodys Investors Service said in a report.
Companies will also face higher borrowing costs and tight funding conditions with monetary policy likely to remain tight,it said.
Moodys could move to a stable outlook if its GDP growth expectations exceed 6 per cent,the rupee stabilises such that one-year volatility falls below 5 per cent and a development and reform-focused government is formed with a strong majority,it said.
Heightened expectation of a scale back of quantitative easing by the Federal Reserve in 2014 to keep the Indian Rupee volatile,making the operating environment more challenging for importers and exporters, the agency said in its report.
