"There is a lot to be done and the next six months will be crucial," Basu said 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.
It included among those risks measures to enhance the effectiveness of the government and create a more positive operational environment for business and private investments.
The negative outlook also reflects India's limited progress on fiscal consolidation, particularly on reducing the central government deficit despite improvement in the financial health of state governments, Fitch said in a statement.
"Against the backdrop of persistent inflation pressures and weak public finances, there is an even greater onus on effective government policies and reforms that would ensure India can navigate the turbulent global economic and financial environment and underpin confidence in the long-run growth potential of the Indian economy," said Art Woo, director in Fitch's Asia-Pacific Sovereign Ratings group, in a statement.
Copyright: Thomson Reuters 2012