The recently announced slew of government measures failed to impress ratings agencies, with both Moody's and Standard & Poor's still suspicious about the new measures.

Last Friday, the government of India opened the broadcast sector, multi-brand retail sector as well as aviation sector for foreign investors, who can now purchase a majority (51 per cent) stakes in companies of these sectors. The government also announced its plans to sell some of its stakes in four public sector units. All these measures were announced on the heels of cut in fuel subsidies.

All these measures were announced to tackle widening fiscal deficit and preventing ratings agencies from slashing country's rating further.

But, Moody's Investors Service and Standard & Poor's expressed doubts about the successful implementation of the new measures.

Takahira Ogawa, director of sovereign ratings at Standard & Poor's, said, "The Indian government's recent announcement on foreign direct investments is encouraging, but at this stage it is still uncertain whether these measures can be implemented."

Atsi Sheth, vice president of Sovereign Risk Group at Moody's, also expressed doubts over whether the government will be able to move ahead and implement the announced reforms.

Indian government is often criticized for its flip-flopping on policies. In December last year, the government announced plans for foreign direct investment in multi-brand retailing, but political pressure forced it to back away from the decision.