The ratings on the Republic of India reflect the country's strong economic prospects, strong external balance sheet, and its deep capital market, which supports a weak, but improving, fiscal position. India's economic prospects remain strong with growth likely to average more than 7.5% in the medium term. The service sector is dynamic, while the industrial sector is benefiting from gradual deregulation, trade liberalization, and modest improvements in infrastructure. The country's business environment is likely to improve in the coming years, sustaining private investment and economic growth. Economic growth is also benefiting from higher consumption and private investment demand, due to a growing middle class and favorable demographics. Investment is also likely to engender employment growth. Gradual reforms and consistent monetary
