TNI Bureau: Leading credit rating agency, Fitch has become the fourth agency to downgrade India’s growth outlook to negative. Earlier, Standard & Poor also had taken a similar step.

Fitch warned that India’s growth outlook could further deteriorate if policy making and governance don’t improve. Former RBI Governor Bimal Jalan has termed the new development as a matter of grave concern even though the government remains evasive.

“A significant loosening of fiscal policy, which leads to an increase in the gross general government debt/GDP ratio, would result in a downgrade of India’s sovereign ratings,” Fitch said in a statement.

India’s economy grew just 5.3 percent in the March quarter, the weakest in nine years. The declining Rupee, rising inflation and increase in government debt, has compounded the problem further.