Fitch Ratings suggests sustained fiscal deficit reduction in India, aided by revenue reforms, would improve its sovereign rating fundamentals.

Fitch Ratings states that a sustained reduction in India's fiscal deficit, supported by enduring revenue-raising reforms, would be beneficial for the country's sovereign rating fundamentals over the medium term. The Reserve Bank of India's larger-than-expected surplus transfer to the government will likely help meet the 5.1% deficit target for the current fiscal year and even lower it further.