New Delhi, Aug 18: Moody's Investors Service on Friday maintained its stable outlook on India, while affirming its Baa3 rating.
Though at the same time, it has taken a cautious stand on political issues, citing Manipur's example. It said that curtailment of civil society and political dissent, compounded by rising sectarian tensions, support a weaker assessment of political risk and the quality of institutions.
It went on to add that though elevated political polarisation is unlikely to lead to a material destabilisation of government, the rising domestic political tensions suggest an ongoing risk of populist policies -- including at the regional and local government levels -- amid the prevalence of social risks such as poverty and income inequality.
