(MENAFN- KNN India) India must boost growth, cut its fiscal deficit and fulfil promises of financial and fiscal reforms in order to justify an upgrade in a credit rating, currently lodged one rung above junk bond territory, said rating agency Standard & Poor's on Monday.
S&P raised India's credit rating outlook to 'stable' from 'negative' in September, citing the prospect of reforms.
It may be mentioned that ratings by global agencies like Standard & Poor Moody's determine attractiveness of a country to global investors both for debt and equity investments particularly from the institutional investors.
According to S&P, factors like higher growth in real per capita GDP, a stronger external position and the government's ability to fulfil its promises on key reforms will be critical to the country's global rating.
"The government presents its annual budget for fiscal 2015/16 on Saturday, but Improvements in India's balance sheet are likely to be gradual and are thus unlikely to lead to a rating upgrade in the next three to five years," S&P said, adding that the country's indicators are the weakest among peers like Brazil and Indonesia.
The Budget will be closely watched for pro-growth measures, reforms for the power sector and other areas of infrastructure, as well as fiscal consolidation.
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