On Thursday, global rating entity Standard and Poor (S&P) maintained the country's sovereign credit rating at 'BBB'-with a stable outlook. The agency highlighted that the country's fiscal position is unstable with widening fiscal deficit and net indebtedness of the government.
Nonetheless, 'BBB' rating signifies that the country has sufficient resources to meet its financial obligations.
"S&P Global Ratings affirmed it's ''BBB-'' long-term and ''A-3'' short-term unsolicited foreign and local currency sovereign credit ratings on India. The outlook on the long-term rating is stable", S&P said in a statement.
Fiscal deficits have exceeded the government''s plan, said the rating agency further, adding it expects limited consolidation over the next few years.
While the country is expected to grow at just 5% in the ongoing fiscal year and for the next year there are expectations that the economy may show resurgence and log over 6% growth.