Moody’s warning to Modi, ‘Keep your communal group in check or risk losing credibility abroad’


In a major setback for the Narendra Modi led central government the Moody’s Analytics on Friday warned Prime Minister Narendra Modi that the country may lose domestic and global credibility if he doesn’t rein in the members of his party responsible for creating an atmosphere of hate in India.

In a report titled India Outlook: Searching for Potential, Moody’s Analytics said for the country to reach its growth potential it has to deliver the promised reforms.

“Undoubtedly, numerous political outcomes will dictate the extent of success,” PTI quoted the report.

Moody’s warning assumes huge significance particularly at a time when intellectuals, writers, scientists and historians of repute have been returning their honours in protest against the growing religious intolerance promoted by the members of the ruling BJP and its affiliates.

Moody’s said, “But in recent times, the government also hasn’t helped itself, with controversial comments from various BJP members. While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions.

“Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility.”

It, however, cautioned that Indian equities have suffered loss in global and domestic investors.

“The Sensex has fallen around 11 per cent since the euphoria behind the new government propelled the stock market. But consistent failure to deliver key economic reforms has faded the optimism,” it added.

Narendra Modi-led government assumed office in May 2014.

Modi has been under pressure for not doing enough to reign in the communal elements within his party prompting many to conclude that the rioters and trouble makers have his tacil approval.


  1. Fall in share price is attributable to global issues. Recent US gdp growth has gone down, there is a possibility of interest hike in US. China’s economy is in bad shape. Global growth is not positive. Therefore, talking of stock market fall is not extraordinary. Secondly it is a communal hype by so called intellectuals to return awards is an anti BJP stand. Almost every foreign news paper predicted doom for India if Modi wins. But IMF, WB etc give positive mark to Modi’s govt. Moody or other rating agencies warnings have no credibility on many occasions

    • We need people like you who can explain so brilliantly. Lets wait for 2 years. Right now it is evident that the opposition is BJP as it constantly opposing the Congress as if it is the ruling party. President is also there who can advise BJP.Lets wait also for Bihar election results. There seems to be a general view that PM is a nice guy. So don’t say anything to or about him, let him enjoy , go on trips etc.

  2. Thanks for your views. Many positive things are happening. Drastic improvements in infrastructure is taking place. Railway Minister is working silently for significant growth. Ease of Doing Bussiness has improved though marginally but next it will be considerably positive. India GDP is the highest in the world despite global economic stagnation. India got the maximum FDI with $31 billion in the world, pushing China to second place with $28 b and U.S. in third position with$27 b. For the first time we have heard fiscal revenue instead of deficit in September. Current account deficit will fall with more coal locally available. These rating agencies at the behest of USA down graded most EU countries including strong France and Austria. S&P paid a huge penalty of 1.5b in February for giving unfair high rating to many gas companies and also to US govt for down grading US to AA+ without taking a revenue of $2 trillion. Thus time is ripe to rate these rating agencies. Dr. N. Ramasubramanyan