While the markets across the world including India slumped in response to the downgrade, the impact is likely to be short-lived. However, financial markets in India are likely to witness volatility due to multiple factors including rise in oil prices, recent measures to boost the Chinese economy and the consequent rebound in metal prices and the upcoming RBI monetary policy amid a rebound in domestic inflation. The rating agency cited likely fiscal deterioration over the next three years, a high and growing general government debt burden and erosion of governance over the past two decades that has resulted in repeated...