8216;Macroeconomic situation remains weak8217;

Fitch today said the country8217;s external position is a 8220;rating strength8221; with reserves of over USD 290 billion at the end of June which will suffice for six months of external payments.

8220;This still provides a key buffer during periods of higher global risk aversion,8221; it added.

Fitch also noted that an acceleration in economic reforms and an improving investment climate are the upsides,while a lax fiscal policy,especially in the run-up to the 2014 general elections,is the downside risk.

Fitch in June had lowered India8217;s credit rating outlook to negative,citing corruption,inadequate reforms,high inflation and slow growth as reasons for the revision

Its rival Samp;P had threatened to downgrade the rating to junk status.

According to a recent report,the finance ministry is planning to present the country8217;s strengths to the rating agencies when they come calling this month,to avoid downgrade.