NEW DELHI: Standard & Poor’s said the new Indian government’s fiscal and economic reforms over the next two to three months will have “significant implications”, indicating that the ratings firm could upgrade its views on the country.

S&P has a “negative” outlook on India’s barely investment-grade, BBBminus, rating. Other two global ratings firms, Fitch and Moody’s, also have the lowest investment-grade rating, but with a ‘stable’ outlook.

“In our view, NDA’s strong showing indicates that it will have a reasonably good political platform to tackle structural issues,” S&P said in a statement on Friday, referring to the election performance of the BJP-led National Democratic Alliance.

“What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy,” analyst Takahira Ogawa said.