Director at Fitch Rating - Mr. Woo highlighted that India's relentlessly deteriorating public finances are the most prominent source of concern; slower GDP growth, high inflation and poor governance are secondary factors. Whilst the official Fitch line is that “over the next 12-24 months there is…more than a likely chance that India’s ratings could be downgraded.
Unless the Indian Government checks the expanding fiscal deficit over in FY13, India's long term foreign currency credit rating seems likely to be downgraded over the next year.
India's best chance of leaving behind the current FM’s 1980s-style policies and reverting to a more market oriented and more fiscally conservative mode of economic management in favour of the entry of a technocratic FM.
