Fitch Affirms India's Sovereign Rating at 'BBB-' with Stable Outlook

Global rating agency Fitch has affirmed India's sovereign rating at 'BBB-' with a stable outlook. India's rating has been unchanged at this lowest investment grade since August 2006. The rating is supported by India's strong medium-term growth outlook and solid external finance position, despite fiscal weaknesses.

Global rating agency Fitch has affirmed India's sovereign rating at 'BBB-' with a stable outlook, maintaining the lowest investment grade for the nation since August 2006.

The affirmation reflects India's robust medium-term growth prospects, which are expected to improve structural aspects of its credit profile, including its GDP share in the global economy and its strong external finance position.

However, fiscal metrics such as deficits and debt service burdens remain a credit weakness. Despite this, forecasting a GDP growth of 7.2% for FY25 and 6.5% for FY26, Fitch notes the critical role of public infrastructure spending and emerging private investments in sustaining economic growth.