International credit rating agency, Standard & Poor's has said that it might have to reduce the rating for India making it the first BRIC nation to lose the investment rating.

The rating agency has cited slowing growth and political roadblocks to economic policy making as the reasons for a downgrade. The agency has rated India BBB-, which is just one level above the junk status of the agency.

"Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and, therefore, its credit quality," Mukherji, an analyst at Standard & Poor's in New York, said in a statement today.

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.