India's prized investment-grade credit rating is facing pressure due to weak government policy-making, slower economic growth and stubborn inflation, ratings agency Standard & Poor's warned on Monday. Asia's third-largest economy is battling high prices, a weak fiscal position and slower growth on the domestic front, while uncertainty in global financial markets and Europe's sovereign debt problems are adding pressure.
"The negative factors, combined with the government's weak policy formulation and implementation, may lead us to a tipping point," warned S&P credit analyst Takahira Ogawa. India's economic reform process has been paralysed by a string of political scandals that has taken the sheen off Prime Minister Manmohan Singh's Congress-led government. India's economy has also slowed under the brunt of 13 interest rate rises since March 2010 as the central bank sought to tame inflation from near double-digits to its current two-year low of 7.47 percent.
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