The ratings on India reflect the country's favorable long-term growth prospects, moderately deep capital markets, and high level of foreign exchange reserves. India's large fiscal deficits and debt and its lower middle-income economy constrain the ratings. We expect India's real GDP per capita to grow by a moderately strong 4.1% in fiscal 2013 (ending March 31, 2013), compared with about an average 6% over the past five years, but down from 8% in the middle of the last decade. In our view, the country's favorable demography and the increasing middle-class will underscore its medium-term growth prospects, which will support the ratings. India's external position remains resilient despite a deterioration since fiscal 2006. The country's foreign currency reserves cover about six
