Outlook negative on Rahul's premiership, BJP win in polls: Moody's Analytics

Moody's Analytics said on Thursday a messy appointment of the Congress Vice-President as the Prime Minister after polls and the Bharatiya Janata Party (BJP)'s win in the elections are downward risks to its outlook on India's economy.

"The government may be contemplating the ascension of Congress party scion Rahul Gandhi should the party win control in the next election. A messy handover of power is a downside risk to the outlook, as is an election win by the main Opposition - BJP," a research and analysis wing of Moody's Corporation said in its latest report.

It said the BJP has shown little interest in constructive policy.

The next couple of months would be crucial. The report said if the government does not make tangible progress and pass some key Bills, the second half of Singh's second term would be deemed a disappointment. About 100 Bills await Parliament approval, yet the Budget session was disrupted and Parliament adjourned two days earlier,

Moody's Analytics said. "The Prime Minister is trying hard to root out corruption - two tainted Cabinet members resigned in May - but it is difficult to pass Bills with a scandal-ridden minority government," it added.Yesterday, parliamentary affairs minister said the time had come to project Rahul Gandhi as the UPA's prime ministerial candidate.