Fitch Ratings has revised India's outlook to negative from stable. this news came in at a time when the market was grappling with Reserve Bank of India's unexpected stance - of not going with the popular expectation of a rate cut.
Fitch says the revision in its outlook is reflective of heightened risks that India's medium- to long-term growth potential will gradually deteriorate if further structural reforms are not hastened, including measures to enhance the effectiveness of the government and create a more positive operational environment for business and private investments.
Just a week back, Credit rating agency Standard and Poor's had warned that India may become the first among the BRICBrazil, Russia, India and Chinacountries to lose its investment grade rating. It had cited slowing GDP growth and political roadblocks to economic policymaking as some of the factors that could lead to such an action.
The negative outlook also reflects India's limited progress on fiscal