Fitch holds the line firm on India’s rating
Fitch Ratings on Tuesday affirmed India's sovereign rating at 'BBB-' with a stable outlook and said the domestic economy remains strong, despite headwinds from the
Fitch Ratings on Tuesday affirmed India's sovereign rating at 'BBB-' with a stable outlook and said the domestic economy remains strong, despite headwinds from the energy shock arising from the West Asia crisis.Fitch said it does not expect a durable risk to India's growth prospects arising from uncertainty related to the US-Iran conflict.ALSO READ | India growth seen slowing to 6.6% in FY27, says Fitch Group company BMI"India's economy has been resilient to shocks in recent years, a trend we expect to continue," Fitch said, while assigning the lowest investment grade rating of 'BBB-'.India's rating reflects its robust growth outlook and solid external finance fundamentals, Fitch said, and estimated GDP growth of 6.4 per cent in the current fiscal year ending March 2027 (FY27).A strengthening record of delivering macroeconomic stability and improving policy credibility should underpin continued robust growth and enhance economic resilience, despite near-term macroeconomic headwinds from the energy shock, Fitch said."High growth should also support a sustained improvement in structural credit metrics and increase the likelihood that government debt will trend down," Fitch added.In the FY27 Budget, the government estimated the debt-to-GDP ratio at 55.6 per cent of GDP, lower than 56.1 per cent of GDP in FY26.The government has set a target to bring down its debt-to-GDP ratio to 50 per cent by March 2031.
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