There are various estimates of India's debt to GDP ratio, but the consensus is that that it would be over 80 per cent at the end of the current fiscal year.
On Tuesday, Economic Affairs Secretary Arvind Mayaram told reporters that economic growth this financial year would be over five per cent and the numbers in the second quarter would be better than the first quarter which yielded gross domestic product expansion of 4.4 per cent, a four-year low.
India's informal economy and service sector accounts for over three-fifths of its $1.8 trillion economy.
'The good news is that money continues to flow into India-focussed offshore funds.'
Being mandatory, these recommendations will have to be immediately built into the Budget for 2015-16.
Growth forecast has been lowered owing to tepid growth in the first half of 2017-18, the lingering effects of demonetisation, transitory challenges of GST, and some risks to agriculture stemming from a spotty monsoon.
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
India welcomed resolution of the political crisis in Sri Lanka and exuded confidence that relations between the two countries will continue to move on in an upward trajectory.
The ministry sought to allay the rating agency's concerns and said economic growth was on an upward swing.
'This is clearly a much stronger government, a much strong Prime Minister's Office and a much more disciplined approach. There is an improvement of the work culture in the government -- people don't play golf in the mornings anymore. There is a huge attempt going on to making business easier,' says Rakesh Mohan, executive director at the IMF.
The index had risen over 585 points in the previous three sessions.
The market breadth in BSE remains positive with 1,554 shares advancing and 1,196 shares declining.
11th-hour debt restructuring programme offered no concessions to creditors