India needs to commit to reform & meet fiscal deficit targets: Fitch Ratings

Putting pressure on Indian government to retain investment grade ratings, Fitch Ratings has said India needs to commit to its recent reform measures and meet its fiscal deficit targets.

Despite praising recent policy steps and Finance Minister P. Chidambaram's assurances on deficits, Fitch said the country needed to do more, including bringing out "a credible" medium-term fiscal plan.

Fitch's warning came after S&P said that India chances of losing its investment-grade rating has receded as a result of economic reforms undertaken by the government.

Earlier last year, both Fitch and S&P had downgraded India from 'BBB-' to 'Negative'.

Fitch, in a statement, said, "As we have previously said, India's patchy performance on policy implementation and the approach of a general election in 2014 could impede fiscal consolidation, suggesting political and implementation risk remain significant."

Read more about: union budget 2013
Story first published: Tuesday, February 5, 2013, 10:30 [IST]
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