Support for India's ratings has 'weakened' somewhat: S&P

Says that recently unveiled Budget showed 'fiscal prudence', but higher spending targets posed a risk

The economic support for India's sovereign ratings has weakened "somewhat" given the sluggish growth in Asia's third largest economy, Kim Eng Tan, senior director of Asia-Pacific Sovereign Ratings at Standard & Poor's said in a webcast on Friday.

Tan also said the recently unveiled government budget showed "fiscal prudence", but higher spending targets posed a risk, in comments similar to its report last month.

India will face "significant challenges" to meet its budgeted revenue growth projections, especially if there is "any further shock" to economic growth, said Tan.

However, Tan also said India's revenue projection was not "entirely out of reach," seeing "a fair chance" that the budget deficit target of 2013/14 can be met.

India aims to cap its deficit at 4.8 pct in the fiscal year starting in Apri

India's economic expansion has slowed dramatically from more than 9 percent in early 2011 to just 4.5 percent in the October-December quarter of 2012.