The BJP’s solid gains despite negative economic hit from demonetisation and the state election results have demonstrated popular support for the government’s policy agenda and will facilitate the implementation of further reforms.

They are credit positive, rating agency Moody’s said on Wednesday. “Next year, 69 seats in the upper house, including 10 from Uttar Pradesh and one from Uttarkhand, will come up for reelection. If the BJP-led coalition increases its seat tally to or closer to an outright majority, passage and implementation of additional reforms will be easier,” Moody’s said in a statement.
Moody’s has now put India on its lowest investment grade Baa3 with a positive outlook.