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Ratings agency S&P Global affirmed 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local currency sovereign credit ratings on India with a stable outlook.
According to the ratings agency, the ratings on India reflect the country's above-average real GDP growth, sound external profile, and evolving monetary settings.
"India's strong democratic institutions promote policy stability and compromise, and also underpin the ratings," the ratings agency said.
"These strengths are balanced against vulnerabilities stemming from the country's low per capita income and consistently elevated fiscal deficits that contribute to high general government debt, net of liquid assets."
Besides, the ratings agency said it expects India to continue to achieve strong real GDP growth that is well above the average for peers at a similar income level.
"This is despite a recent deceleration in economic growth," the ratings agency said.
"In our view, the Indian economy has slowed measurably. Real GDP growth fell to a more than six-year low of 4.5 per cent year-on-year in the second quarter of this fiscal year (ending March 31, 2020). This is the fifth consecutive quarter of decline in year-on-year growth rate."