Moody's Affirms India's Resilient Credit Rating Amid Economic Growth
Moody's has affirmed India's long-term credit ratings at 'Baa3', reflecting robust economic growth and a stable external position. Despite fiscal weaknesses, India remains resilient against external challenges. Continued economic expansion is expected, supported by government capital expenditure and easing monetary policy, although higher US tariffs pose constraints.
- Country:
- India
In a significant affirmation, Moody's has maintained India's long-term local and foreign-currency issuer ratings at 'Baa3' with a stable outlook, driven by robust economic growth and a strong external position.
However, the credit agency highlighted persistent fiscal weaknesses that temper these strengths. Despite these challenges, India's economy is forecasted to maintain strong GDP growth, aided by government capital expenditure and lower inflation.
Higher US tariffs pose a potential challenge to India's ambitions in manufacturing and exports, but domestic consumption and investment remain well-supported.
(With inputs from agencies.)
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