We expect India's fiscal consolidation to continue in the next few years, supported by a strong growth momentum. We affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The stable outlook reflects our view that India's external flexibility and fiscal performance will temper the effects of inflation and political uncertainty. On April 6, 2011, Standard&Poor's Ratings Services affirmed the 'BBB-' long-term and 'A-3' short-term unsolicited sovereign credit ratings on India. The outlook on the long-term rating is stable. The ratings on India reflect the country's good economic growth prospects and its fairly strong external position. Positive investment trends further underpin the ratings, with foreign direct investment and portfolio investments covering a large share of the
