Indian government takes exception to Moody's Analytics report

The Indian government on Wednesday reacted sharply to a comment by Moody's Analytics that Prime Minister Narendra Modi must check party members from making controversial statements, or risk losing global credibility.

"It is with regret the Government of India notes the irresponsible and distorted reporting by certain sections of the Indian media on what was the personal opinion of a junior associate economist employed with Moody's Analytics," the government said in a statement.

"It is surprising that sections of the Indian media failed to make a distinction between Moody's Analytics which is merely a data and analytics firm and Moody's Investor Services, which provides Ratings services," it said.

"Opinion of a junior associate economist employed with Moody's Analytics has been splashed all across implying it as the opinion of Moody's Analytics. The government notes with distress that the personal opinion of a junior analyst was passed off as a commentary on India by a rating agency by the media to buttress the narrative it wants to portray."

In an analysis titled "India Outlook: Searching for Potential", Moody's Analytics had said that while the prime minister's BJP does not have a majority in the upper house to pass crucial reforms, the government also hasn't helped itself with controversial comments from various members.

"While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions. Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy," it said.

"Modi must keep his members in check or risk losing domestic and global credibility."