The government's recent measures to boost India's economy are positive steps - but significant risks remain, according to a report by Fitch Ratings.
"Public commitments and policy announcements by the Indian government so far in 2013 are encouraging signals that the authorities want to maintain the momentum towards fiscal consolidation and structural reform generated since last summer," Fitch said in Monday's report. "However, policy execution and the impact on trend growth will remain key to our ratings assessment.
"India's patchy performance on policy implementation, and the approach of elections in 2014 could impede fiscal consolidation, suggesting political and implementation risk remain significant. This is reflected in the negative outlook on India's BBB- rating."
That rating is one notch above junk-bond status.
India has been grappling with slowing growth, a weak rupee, and widening budget and current account deficits.
A series of economic reforms were announced in September to boost foreign investment and economic growth following a period of policy paralysis.
This year, India has increased rail fares, allowed oil marketing companies to increase diesel prices slightly, and increased the limit on foreign investment in rupee-denominated bonds.
