Governments restructure their borrowing targets from time to time and the restructuring of the borrowing from Rs 50,000 crore to Rs 20,000 crore is a relatively small amount with respect to the size of India's economy.

India's long maturity time frame of debt particularly insulated the country from fluctuations. Therefore, a change in the adjustment of its borrowing from one year to the other would not affect its overall cost of debt in the long run.

The reduction will not really impact our fiscal deficit target estimate for India and hence is not too relevant to our sovereign rating

Moody's expects the budget deficit to be a little higher as the government calls for gradual fiscal consolidation

The Goods and Services Tax (GST) in itself is designed to be revenue neutral and the revenue accretion will happen due to greater compliance and greater productivity due to a simplified tax system. "But we do not expect to see an immediate impact in the next fiscal year."

Moody’s noted that the Indian economy is seeing a recovery after temporary effects of demonetisation. "We forecast a 7.5 percent growth in the GDP, or even higher given the momentum acquired from incomes catching up and productivity seen from a simplified tax structure.

For China, Moody’s expects a gradual slowdown. The GDP growth is expected to be between 6 and 6.6 percent .China is planning to shift its growth towards the service sector which will cause an inevitable slowdown.