SINGAPORE (Standard & Poor's) Nov. 20, 2001--Standard & Poor's today affirmed its double-'B'/'B' foreign currency and triple-'B'-minus/'A-3' local currency long- and short-term sovereign credit ratings on the Republic of India. The outlook remains negative. The outlook reflects the continued deterioration of the government's financial profile, with persistently high fiscal deficits resulting in a rising burden of public debt. Failure to undertake structural reform in a timely manner has eroded the margin of error for policymakers to avoid macroeconomic instability. The government's already low level of fiscal flexibility--interest payments are projected to consume about one-half of central government revenues this year--might worsen if the current deceleration in GDP growth persists. Growing government borrowing limits the resources available to the private sector,
