Fitch affirms India’s sovereign rating on robust growth outlook


NEW DELHI: Fitch Ratings on Tuesday affirmed India’s country rating at a stable outlook He said the country has robust growth prospects and robust external finances.
“Fitch Ratings has affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook,” it said in a statement, adding strong growth potential is a key supportive factor for the country rating.
“India’s rating reflects the strengths of a resilient growth outlook relative to peers and resilient external finances, which have helped India weather the major external shocks over the past year,” said Fitch Ratings.
However, these are offset by India’s weak public finances, exemplified by high deficits and debt compared to other countries, and lagging structural indicators, including World Bank governance indicators and GDP per capita, she added.
The agency has left India’s credit rating unchanged since August 2006 at BBB- – the lowest investment grade rating.
Fitch Ratings forecasts India to be one of the fastest growing rated nations globally at 6 percent for the current fiscal year ending March 2024, supported by robust investment prospects.
“Nonetheless, headwinds from elevated inflation, high interest rates and subdued global demand, along with slowing pandemic-driven pent-up demand, will slow growth from our FY23 estimate of 7 percent before recovering to 6.7 percent by FY25,” he said Global This was announced by the rating agency.

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