Recent policy actions positive for sovereign outlook: Moody's

Moody's has maintained a stable outlook on India's credit rating. Atsi Sheth, vice president and senior analyst of sovereign risk group at Moody's Investors Services, explains while recent actions on diesel pricing are positive, they are watching for the fiscal impact of the measures on next year's Budget. He adds that if growth picks up, the government may be able to reduce fiscal deficit by 60 basis points next year as suggested by the Finance Minister.