Fitch affirms India’s long-term foreign currency issuer default rating at ‘BBB-‘; outlook stable

News Snapshot:

However, the rating agency also flagged that India's weak public finances were the 'largest constraint' to the rating. Fitch expects the Indian government to achieve its fiscal deficit target of 5.9% of gross domestic product in fiscal year 2024 from 6.4% in fiscal year 2023. But the goal to reduce that deficit to 4.5% by fiscal year 2026 will be challenging. "Beyond FY24 there is less certainty on the fiscal path and trade-offs between economic growth and consolidation may become more acute," Fitch said. ALSO READ: Fitch expects India to be among fastest-growing nations in 2024-25 Earlier, the global ratings...