New Delhi, Feb. 1 -- Reacting to India's Budget for 2026-27, Moody's Ratings described it as "tactical" but not a "breakthrough." Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget, outlining the government's economic roadmap for the next financial year.

Planned fiscal consolidation, which will bring the budget gap to 4.3% from 4.4% in the current year, will not change India's credit profile, Christian de Guzman, senior vice president at Moody's Ratings, told Reuters.

"Despite India's lengthening track record of deficit consolidation or fiscal discipline, this deficit is still wider than what it was prior to COVID," Guzman said. "We haven't seen the fiscal metrics improve sufficiently enough to actually change th...