New Delhi, April 26:

India is showing ‘classic signs of an overheating economy,’ with high growth and accelerating inflation, a problem that can be addressed only through far-reaching reforms, Moody’s Investors Services said today.

The agency said it is cautiously optimistic that the Indian government would be able to overcome political opposition to deepen reforms and resolve the current economic imbalances.

That is why the agency continues to maintain a ‘stable rating outlook’ on the country, it said. Moody’s didn’t elaborate on specific reforms India should pursue, but the Indian government has been previously criticised for deferring several plans relating to privatisation and liberalisation of economy for nearly three years because of opposition from leftist parties.

‘Prevent it’

BEIJING: China will cut export incentives, curb energy-intensive industries and take other steps to keep soaring economic growth from racing out of control. “China’s first-quarter econo-mic growth is still in a relatively fast growth range. — AP