economy

Fitch affirms India at BBB-; outlook negative

Fitch affirms India at BBB-; outlook negative

Ratings agency Fitch today said it has affirmed Indias long-term foreign foreign-currency issuer default rating at BBB- with the outlook being negative. Indias rapid economic recovery from Covid pandemic, easing financial sector pressures are narrowing risks to medium-term growth outlook, Fitch said. Fitch projected a GDP growth of 8.7% in the current financial year ending March 2022 (FY22) and 10% in FY23 for India. Indias rating balances still-strong medium-term growth outlook, external resilience from solid foreign reserve buffers, against high public debt and weak financial sector, Fitch said. Indias negative outlook on rating reflects lingering uncertainty around medium-term debt trajectory, the ratings agency noted. Fitch, on India, said potential remains for a resurgence in coronavirus cases, but anticipated economic impact of further covid-19 outbreaks would be less pronounced than previous surges. Indias strong medium-term growth outlook relative to peers is a key supporting factor for rating, Fitch said, adding that fiscal metrics are showing signs of improvement and forecast Indias general government deficit to narrow to 10.6% of GDP in FY22. Strong revenue growth, particularly from goods and services tax collections, is facilitating indias government to stay within budget parameters, according to it. Download.

economy 2021-11-16 Livemint