It further said that weak global cues and an impending US rate hike may also have an impact on Indian businesses.
    
Moody's said that a failure by the government in implementing key reforms such as Goods and Services Tax (GST) and land acquisition laws could hamper investment and signal a derailed reform prospect.
    
But despite these overall supportive domestic conditions for the country's corporates, potential headwinds loom from a loss of reform momentum, he said.
    
The Modi administration so far this year has been unable to enact legislation on key reforms, including a unified goods and services tax and the Land Acquisition Bill.

The ruling NDA government has said it is willing to discuss with the Congress to get the GST Bill passed in the winter session of Parliament beginning tomorrow. The passage of the Bill in the forthcoming session is essential to ensure rollout of GST from April 1, 2016.
    
In its 2016 outlook for Indian non-financial corporates, Moody's said a 7.5 percent growth, easing inflation resulting in lower interest rate will lead to improving corporate cash flows and be broadly supportive of business growth.

 

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