Despite a notable deceleration in India's economy in recent quarters, we believe its structural growth outperformance remains intact. Real GDP growth is therefore likely to gradually recover toward longer-term trend rates over the next two to three years. Nevertheless, India's fiscal position remains precarious, with elevated fiscal deficits and net government indebtedness. Fiscal deficits have exceeded the government's plan, and we expect limited consolidation over the next few years. We are affirming our 'BBB-' long-term and 'A-3' short-term foreign and local currency sovereign credit ratings on India. The stable outlook reflects our view that India's growth will stabilize and begin to recover from its current low ebb, and fiscal deficits will remain broadly in line with our forecasts over the
