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Narrowing current account deficit will not be enough to shield India from pressures tied to Fed tapering, said Fitch Ratings.
However, Fitch added that the spillover effects of the rupee's weakness have not significantly hurt India's creditworthiness and will therefore not trigger any ratings action at this point.
"(India's ratings) already incorporate both the sovereign's vulnerabilities and tolerance for volatility in global financial market conditions," Fitch said.
Fitch added that India's economy has "not lost much momentum" on the back of "resilient" agriculture and exports, and predicted economic growth of 4.8% in 2013/14 and 5.8% in 2014/15.
Fitch also noted that fiscal deficit remains under pressure, especially ahead of the general elections due next year, but said the government is likely to clam down heavily on spending.
Fitch rates India at "BBB-minus", the lowest investment grade rating. It revised its outlook for the country to "stable" from "negative" in June.
