India News | Fitch Affirms India's Investment Grade Rating at 'BBB-' on Robust Growth Outlook

New Delhi, Jan 16 (PTI) Fitch Ratings on Tuesday affirmed India's sovereign rating at 'BBB-' with a stable outlook on robust medium-term growth prospects and sound external finances.

India's rating has remained unchanged at 'BBB-', the lowest investment grade, since August 2006.

Also Read | Bihar Shocker: Villagers Kill Stray Dog After It Bites Trader's Private Parts in Banka.

"Fitch Ratings has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook," the global rating agency said in a statement.

In its sovereign rating action, Fitch said India is poised to remain one of the fastest-growing countries globally in the next few years, as the robust economic momentum is proving resilient.

Also Read | South American Nations Showing Interest in Pinaka, India Working on Developing 120 Km, 200 Km Rockets: Report.

The agency has projected India's GDP growth at 6.9 per cent for the fiscal year ending March 2024 (FY24) before easing to 6.5 per cent in FY25.

Investment is likely to remain a key growth driver, as the government's capex drive is expected to continue, and private investment should accelerate gradually. Consumption is also likely to moderate further in the near term due to reduced household savings buffers, Fitch said.

India's rating is underpinned by a robust medium-term GDP growth outlook and sound external finances, which remain intact as the country has effectively navigated a fraught external environment in the past few years, Fitch said.

However, weak public finances - illustrated by high deficits, debt and interest/ revenue ratio compared with peers - continue to be the largest constraint for the rating.

Lagging structural metrics, including World Bank governance indicators and GDP per capita, also weigh on the rating, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)