India exchange traded funds have been depressed over 2013 as high inflation and low growth pressure the economy, and it doesn’t look like things are shaping up any differently for 2014.

The WisdomTree India Earnings ETF (NYSE: EPI) declined 12.3% year-to-date. [Inflation, Rates Still Weighing on India ETFs]

Moody’s Analytics believes there is a reduced chance of a recovery in 2014, Business Standard reports.

“India’s 2013 economic performance has been disappointing and little on the horizon is likely to lift growth,” Moody’s said.

Nevertheless, a “reform-minded” government could steer the country in the right direction.

“Indian monetary policy over the past three years has been at best ineffective and at worst counterproductive, but this is changing under the new central bank head,” Moody’s said.

Looking ahead, Moody’s is cautious about India’s upcoming general elections and how it will impact capital flows coming in.

“The May elections open the possibility of better governance,” Moody’s added.