On Aug. 23, 2004, Standard & Poor's Ratings Services revised the outlook on its 'BB' long-term foreign currency rating on the Republic of India to positive from stable, while the outlook on the 'BB+' long-term local currency rating was revised to stable from negative. At the same time, all the ratings on India were affirmed. The outlook revisions reflect India's improving external liquidity and better prospects for stabilizing the government's debt burden. India's resilient external position, as illustrated by its strengthening liquidity, is likely to improve in the coming years. Foreign exchange reserves, which exceed 2000% of short-term debt, mitigate the risk of volatility in external confidence. The strong growth in export earnings, particularly from the service and manufacturing sectors,
