New Delhi [India], February 11 (ANI): The recently announced trade deals with the United States and the European Union (EU), along with the fiscal policy roadmap outlined in the Union Budget 2026-27, uphold India's (CareEdge Global BBB+/Stable) sovereign credit profile, according to a report by CareEdge Ratings.

The report stated that India's sovereign credit profile continues to be supported by resilient growth prospects, improving external visibility, and a calibrated approach to fiscal consolidation.

Also Read | Vande Mataram Protocol Announced: Centre Issues Detailed Guidelines, Makes National Song Mandatory at Government and State Functions.

It noted that recent trade agreements have reduced external uncertainty and enhanced India's relative export competitiveness.

It stated "Recent Trade Deals and Fiscal Consolidation in Budget Support India's Credit Fundamentals... uphold India's (CareEdge Global BBB+/Stable) credit profile".

Also Read | Karnataka Congress Leader Mateen Patel Flaunts Guns in Reel on Dhurandhar's 'Fa9la' Song, Probe Launched as Video Goes Viral.

The new India-US trade agreement is expected to lower US tariffs on imports from India to 18 per cent from the currently prevailing cumulative headline tariff of 50 per cent. The proposed tariff reduction could improve India's relative competitiveness of exports.

Along with India's trade engagement with the EU, this is expected to enhance the diversification and scale of India's exports and support medium-term growth prospects.

The report also highlighted that the Union Budget 2026-27 signals a steady and calibrated approach to fiscal consolidation. The Budget remains anchored to maintaining the deficit target, with continued emphasis on public capital expenditure and investment-led expansion.

According to the report, this approach reinforces medium-term growth and strengthens macroeconomic stability.

While India's public debt levels and interest burden remain elevated, the report noted that resilient domestic demand, diversified growth drivers, and comfortable external buffers are expected to support macroeconomic stability over the near to medium term.

The report also expects that the combination of improved trade dynamics and a disciplined fiscal path will help cement India's growth trajectory. The agency highlighted that sustained progress on revenue mobilisation, delivery on disinvestment targets, and effective debt management will be critical to maintaining fiscal credibility.

The report added that a sustained commitment to medium-term fiscal consolidation bodes well for the country's sovereign credit profile.

Overall, the developments on the trade front and the fiscal policy direction outlined in the FY27 Budget are seen as positive factors supporting India's (CareEdge Global BBB+/Stable) rating outlook. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)