India's Credit Rating Holds Steady Amid Economic Reform Hopes
Fitch Ratings has maintained India's 'BBB-' sovereign credit rating with a stable outlook, citing strong growth and external finances. While US tariffs pose a risk to GDP forecasts, India’s economic outlook remains comparatively strong. Proposed GST reforms and deregulation efforts aim to further bolster growth.
- Country:
- India
Fitch Ratings confirmed India's sovereign credit rating at 'BBB-' with a stable outlook on Monday, citing the nation's robust growth and solid external finances as supporting factors.
The 50 percent US tariffs on India present a moderate downside risk to the country's 6.5 percent GDP growth forecast for the current fiscal year, as per Fitch's analysis. Despite this, India's economic outlook continues to outperform its peers, even though momentum has waned slightly over the past two years.
Fitch's forecast for India's GDP growth remains at 6.5 percent for FY26, comparable to FY25, and significantly above the 'BBB' category median of 2.5 percent. Proposed GST reforms, if enacted, could enhance consumption and mitigate some growth risks, although fiscal challenges persist.
(With inputs from agencies.)
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