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Moody’s Corporation has become the first major global institution to make a comment on the recent political controversies in India. Its economic research and analysis division, Moody’s Analytics, cautioned Prime Minister Narendra Modi that India has the risk of losing domestic and global credibility, if he does not rein in members of Bharatiya Janata Party. The caution comes in the wake of the beef controversy.

It also noted that “right-leaning” party of Modi did not have a majority in the Upper House, additionally obstructionist Opposition caused difficulty in passing crucial reform Bills. The concerns were expressed by the economic research and analysis unit of Moody’s Corp in a report titled ‘India Outlook: Searching for Potential’.

Moody’s Analytics said, “In recent times, the Government also hasn’t helped itself, with controversial comments from various BJP members… Modi must keep his members in check or risk losing domestic and global credibility.”

The report said that stiffer opposition raised ethnic tensions, and stressing on the reform agenda that Government needs to pay attention on. “Along with a possible increase in violence, the government will face stiffer opposition in the Upper House as the debate turns away from economic policy,” it said.

“Overall, it’s unclear whether India can deliver the promised reforms and hit its growth potential… Undoubtedly, numerous political outcomes will dictate the extent of success.”

-Sumana