Fitch maintains India's 'BBB-' sovereign rating, projecting 7.2% GDP growth in FY24-25.
Fitch has affirmed India's 'BBB-' long-term sovereign rating, citing strong medium-term growth prospects, fiscal credibility, and a solid external finance position. The stable outlook suggests that the rating is unlikely to be revised downwards in the short term. Fitch projects India's GDP growth at 7.2% in FY 2024-25, moderating to 6.5% by FY 2025-26. Despite these positive factors, fiscal metrics, such as deficits, debt, and debt service burdens, remain high compared to 'BBB' range peers, and lagging structural metrics, including governance indicators and GDP per capita, also weigh on the rating.
August 29, 2024
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