 "Japanese rating agency JCR to review India's sovereign rating")
Satoshi Nakagawa, special representative for Asia at JCR, said the agency reviews its ratings every year. He, however, did not to specify the date of next review. JCR on Tuesday signed an MoU with Indian rating agency CARE Ratings to help Japanese companies make investments in India and vice versa.
In its review last year, JCR had said that ratings reflect the strong growth potential of Indian economy and political stability. On the other hand, the ratings are constrained mainly by the continuing weakness in fiscal position and inadequate infrastructure.
The country's rapid economic growth in the late 2000's, driven by domestic demand amid the rise of middle-income households, brought about higher inflationary pressure, with its current account deficit largely widening due to increased imports centering on oil.
However, the inflationary pressure has substantially subsided in recent months and the current account deficit has narrowed by half from its historical high in FY2012. This was helped in part by the interest rate hikes by the Reserve Bank of India and in part by the plunge of oil prices.