'7.5% growth may not be sustainable; resolve tax issues'

A growth rate of more than 7.5 per cent may not be "sustainable" for India in the present scenario and the country needs to resolve tax issues that are impacting its investment climate, global rating agency Moody's said on Thursday.

It said however the grow rate of 7.5 per cent projected for the current fiscal year is "good" and India's outlook is better than its peers.

"What is positive for India is political willingness to take a longer term reform measures. 7.5 per cent growth rate for current fiscal is a good growth and in present scenario higher than 7.5 per cent is not sustainable," Moody's vice president Atsi Seth said.

She underlined the need for resolving the tax issues saying "uncertainty on tax issues is a deterrent to investment climate. Clarity on tax issue is important.