International rating agency, Standard & Poor’s has warned that it could downgraded India’s rating as the country’s economy continue to struggle amid global economic turmoil.

It said that India could become the first among BRIC nations including Brazil, Russia, India and China, to lose its investment rating. The country economy is struggling to cope with High inflation and interest rates, splits in the top leadership and the euro zone debt crisis since more than a year.

The agency believes that the Indian leadership has strayed away from the path of reforms in the country and have not been able to push any major reform. Public pressure forced the government to do away with a hike in diesel after s similar was introduced in the price of petrol.

The country’s industrial output has fallen 3.5 per cent in March 2012. The manufacturing sector rose 0.1 per cent and electricity at 4.6 per cent while Mining registered a fall of 3.6 per cent and Capital goods fell by 16.3 per cent. On the other hand, the vibrant consumer goods sector grew 5.2 per cent but was unable to lift the whole index.

The international rating agency had downgraded the country’s outlook earlier in April. At the time, S&P had said that it is revising outlook for India to ‘negative’ amid macro economic developments and inability of the government to implement reforms at a fast pace.