A report released by Moody’s Investors Service on Wednesday said the current Indian government has so far been unable to enact legislation on key reforms. It also stated that weak global cues and an impending US rate hike could impact Indian businesses further. The winter session of Parliament, which begins on Thursday, could prove to be crucial in pushing the long overdue Goods and Services Tax Bill past the parliamentary deadlock that has been plaguing NDA’s economic reforms agenda so far. The ruling NDA government has offered to discuss the Bill, with the opposition. It must be passed if the government wants it to be rolled out from April 1, 2016.

“It seems highly unlikely that the major reforms will get enacted by the upper house of the Indian Parliament where the ruling coalition is in minority. A failure to implement these reforms could hamper investments amid weak global growth,” said the Moody’s Investors Service report prepared by Vikas Halan, VP and senior credit officer.

The Indian Express reported that the other "downside factors" that have been listed by Moody’s are loss of reform momentum, which could potentially lead to annual GDP growth falling below 6% and a subsequent dip in credit metrics. Additionally, higher interest rates brought on by rising inflation and exchange rate volatility could result in a tight credit outflow environment. However, a healthy 7.5% GDP growth for India for the fiscal year ending March 2017 and a surge in manufacturing activity will boost business growth, Halan stated in the report.