The ratings on the Republic of India are constrained by: Rising public debt and growing fiscal inflexibility. The consolidated direct debt of India's state and central governments, plus debt guaranteed by them, is projected to approach 85% of GDP this year. The consolidated general government deficit, about 9%-10% of GDP, is one of the highest of all sovereigns rated by Standard & Poor's. The inability of India's political class, cutting across all parties, to re-ignite reform momentum. For example, the losses of India's bankrupt state electricity boards, now exceeding 1% of GDP, continue to rise, thanks to both corruption and populist policies to subsidize most users. Steps to boost the production capacity of the economy, such as reducing high-trade barriers
