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.