'India's economy has been resilient': Fitch keeps sovereign rating at BBB-

Fitch Ratings on Tuesday affirmed India's sovereign rating at BBB- with a stable outlook, saying the domestic economy remains strong despite headwinds from the West Asia crisis.

The rating agency said it does not expect uncertainty around the US-Iran conflict to pose a lasting risk to India's growth prospects.

“India's economy has been resilient to shocks in recent years, a trend we expect to continue,” Fitch said.

Fitch's BBB- is the lowest investment-grade rating. It said India's rating reflects its strong growth outlook and solid external finance fundamentals.

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GDP GROWTH SEEN AT 6.4%

Fitch estimated India's GDP growth at 6.4% in the current financial year ending March 2027.

It said India's strengthening record of delivering macroeconomic stability and improving policy credibility should support continued robust growth.

That, Fitch said, should also help the economy remain resilient despite near-term pressure from the energy shock linked to the West Asia crisis.

“High growth should also support a sustained improvement in structural credit metrics and increase the likelihood that government debt will trend down,” Fitch added.

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The government has also projected a gradual decline in its debt burden.

The FY27 Budget estimates the debt-to-GDP ratio at 55.6%, down from 56.1% in FY26.

The government has set a target of bringing the ratio down to 50% by March 2031.

(With inputs from PTI)