Fitch Retains India's 'BBB-' Rating Amid Robust Growth

Fitch Ratings reaffirmed India's sovereign credit rating at 'BBB-' with a stable outlook, citing strong growth and external finances. However, tariffs from the US pose risks to India's GDP growth. Proposed GST reforms could support consumption. India's economic outlook remains robust despite fiscal challenges.

Fitch Ratings on Monday reaffirmed India's sovereign credit rating at 'BBB-' with a stable outlook, highlighting the nation's strong economic growth and solid external finances.

Despite the potential impact of proposed 50% US tariffs on India, Fitch maintains a GDP growth forecast of 6.5% for the current fiscal year. The agency notes that proposed GST reforms could mitigate some economic risks by bolstering consumption.

India's economic outlook remains favorable compared to its peers, driven by public and private investment upticks. However, high deficits and debt remain challenges as Fitch flags fiscal metrics as a credit weakness.

(With inputs from agencies.)