Chief economic adviser Kaushik Basu on Monday said "herd mentality" of ratings agencies led to Fitch's revision of India's rating outlook to negative from stable, but added that the review was not surprising.
"There is a lot to be done and the next six months will be crucial," Basu said while addressing journalists at the Foreign Correspondents' Club in New Delhi. "The whole statement of Fitch is a pretty positive statement."
Earlier, Fitch Ratings cut its credit outlook for India to negative from stable, nearly two months after rival Standard & Poor's made a similar call, citing risks that India's growth outlook could deteriorate if policymaking and governance don't improve.
