NEW DELHI: After securing an outlook upgrade from S&P, India looks well on track for a ratings upgrade in the next 12 months, that is by next Diwali , says Ravneet Gill, CEO at Deustche Bank India, in an interview with ET Now."There is plenty to play for - and the way we look at it, 2015 could be a year that redefines India in the eyes of investors, in the eyes the Indians themselves," he says.Ratings upgrade in the next 12 months is a very credible possibility, he says. "Also, one of the things that we need to notice is that the money that has come into equities this time is from first-time investors."Last month, acknowledging efforts by the Narendra Modi's government to maintain fiscal discipline, push economic growth and revive investment cycle in Asia's third largest economy, Standard & Poor raised India's rating outlook to 'stable' from 'negative'.The ratings agency further added that it could raise the rating if the economy reverted to a real per capita GDP trend growth of 5.5 per cent per year and fiscal, external, or inflation metrics improve.While the risk of a downgrade for India is not imminent right now; but, a lot more needs to happen before India gets a ratings upgrade, experts feel.Before the ratings upgrade can happen, whether it is by S&P or by any other rating agency, they will look for a very durable improvement in the economic parameters along with fiscal consolidation.For many years, India ranked low on fiscal consolidation. However, from 2003 onwards the government made conscious efforts to bring down its fiscal deficit and public debt after it passed the Fiscal Responsibility and Budget Management (FRBM) Act."Though its efforts went off well in the initial years, government finances slipped in the last two years as it was forced to provide fiscal sops initially to tackle high inflation and then to contain the impact of the global financial crisis of 2008-09 that hit the real economy hard," ET had reported."If the nature of fiscal consolidation and fiscal correction that we do over the next 12-18 months appears to be durable and sustainable, then I am very confident that we will see an upgrade in India's ratings," said Neeraj Gambhir, MD & Head-Fixed Income India, Nomura Capital.Impact on marketsWell, a ratings upgrade is indeed positive for economy and for the markets, but investors should not be given too much importance, say analysts; considering the fact that lot of global funds have already allocated money to India but even more are waiting on the sidelines.A lot of global emerging markets have already allocated capital to India, says Jeff Choudhry, Head of EM Equities, F&C, in an interview with ET Now."Most of the global emerging markets funds are 'overweight' and I do not think a ratings upgrade is going to have any impact at all in terms of more money coming into the market," he adds.Investors still have a certain level of skepticism - so they would like to see more policy action, they would like to see more action on the ground, say analysts.As per analysts, investors eventually want to see is capex on the ground which is still six to nine months away and when you start seeing that - big projects coming on stream, fresh capex getting incurred that is the time when you see that the allocation will certainly grow.Gill is of the view that relative to their overall portfolios of pension funds have allocated a very small percentage to India. At the moment what they are doing is that they are just dipping their toes in the water and feeling the way around."If there was a sustained effort on the part of the government to reach out to them and build confidence, engage with them, or have a decision making system which is much more inclusive, we could actually see very significant funds coming in from agency," he added.