Indian government's recent reform measures will not be able to improve the country's credit profile, ratings agency Moody's Investors Service says.

Despite the recent measure to rein in deficit, Moody's Investors Service has estimated that the country's fiscal deficit would exceed 5.1 per cent level in the current fiscal year.

The union government of India recently reduced subsidy on diesel by increasing its prices by Rs 5 per litre, and capped the number of subsidized LPG cylinders to six per annum per household.

Atsi Sheth, vice president of Moody's Investors Service, said the reduction in subsidy would slash deficit only a bit, while slowdown in economic growth would remain a big concern over the coming months.

Speaking in a conference call organised by broking firm Nirmal Bang, Sheth said, "Conditions like high inflation, high interest rates and slowing consumption, besides the slowdown in the agriculture sector, lead us to expect slow growth over the next few quarters."

He added that the slowdown should not surprise anybody as any country with private sector-led growth is subject to business cycles.

Sheth reiterated BAA3 or 'stable' outlook for India's sovereign credit.