A "BRIC" is slipping

One of the 4 emerging economies of the BRIC (Brazil, Russia, India, China), has been lowered in its credit rating by Standard & Poor's from 'stable' to 'negative'. What it essentially means is that the once heating up Indian economy may be facing serious headwinds and ..."its fiscal position has deteriorated to a level that is unsustainable in the medium term." Indian Government will have a general deficit and will be forced to take other fiscal measures to issue bonds to raise money to meet the deficits. The deficits are also due to many policy measures (to appease the masses) ahead of the elections, that cause fiscal stress to the budget.

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