May 2 (Reuters) - Fitch Ratings:
* Fitch affirms India at 'BBB-'; outlook stable
* Fitch on India says country ceiling is also affirmed at 'BBB-' and short-term foreign- and local-currency IDRs are affirmed at 'F3'
* Says "India is not immune to external shocks, but country's strong external finances make it less vulnerable than many of its peers"
* Says weak public finances continue to constrain India's ratings
* Says India's sovereign ratings balance strong medium-term growth outlook, favourable external balances with weak fiscal position, difficult business environment
* Fitch on India says significant contingent liabilities for sovereign continue to emanate from public sector banks
* Fitch on India says authorities' focus on reining in inflation starting to bear fruit and might represent shift away from high inflation rates of past
* Says India's business environment likely to gradually improve with implementation, continued broadening of government's structural reform agenda
* Says forecasts India's real GDP growth to accelerate to 7.7 percent in FY17 and FY18, from 7.1 percent in FY16
* Says "not likely" that Indian government's budgeted INR 700 billion capital injection into banks between FY16 and FY19 will be sufficient
* Says expects India's current-account balance to narrow to -0.9% in FY17, foreign reserves to build up to 8.4 months of current external payments Source text for Eikon: