Fitch Ratings on Tuesday affirmed India’s sovereign rating with a stable outlook, saying the country has a strong growth outlook and resilient external finances.
Fitch Ratings has affirmed India’s long-term foreign-currency issuer default rating (IDR) at ‘BBB-‘ with a stable outlook.
“India’s ratings reflect strength from a stronger growth outlook than peers and resilient external finances, which have supported India in weathering major external shocks over the past year,” Fitch Ratings said.
However, these are offset by India’s weak public finances, characterized by high deficits and debt relative to peers, as well as lagging structural indicators including World Bank governance indicators and GDP per capita.
The agency has kept India’s credit rating unchanged at ‘BBB-‘ – the lowest investment grade rating – since August 2006.
Fitch Ratings projects India to be one of the fastest growing rated sovereigns globally in the current fiscal year ending March 2024 at 6 per cent, supported by resilient investment prospects.
“Nevertheless, pent-up demand induced by the waning pandemic, along with higher inflation, higher interest rates and a fall in global demand, is likely to decline from our FY23 estimate of 7 per cent before reaching 6.7 per cent by FY2015.” growth will slow down,” the global rating agency said.