Fitch affirms India’s sovereign ratings, marks tough fiscal consolidation path.
New Delhi: Global Rating Agency fox fur India’s long-term foreign exchange issuer default rating was affirmed at ‘BBB-‘ with a stable outlook on Tuesday, but flagged the country’s weak position. public finance were the “biggest hurdle” to ratings.
Fitch expects the federal government to achieve this Fiscal deficit The target was raised from 6.4% in fiscal 2023 to 5.9% of GDP in fiscal 2024, but said the target of reducing that deficit to 4.5% by fiscal 2026 would be challenging.
“There is less certainty over the fiscal path beyond FY2024 and the trade-off between economic growth and consolidation may become more acute,” Fitch said.
The global rating agency estimates India’s economy to grow 6.9% this fiscal year ending March 2024 and 6.5% next year and anticipates a 75 basis point policy rate cut by the central bank to headline the end of 2024. Inflation will reduce to 4.7%. In the financial year 2025.
Fitch expects the federal government to achieve this Fiscal deficit The target was raised from 6.4% in fiscal 2023 to 5.9% of GDP in fiscal 2024, but said the target of reducing that deficit to 4.5% by fiscal 2026 would be challenging.
“There is less certainty over the fiscal path beyond FY2024 and the trade-off between economic growth and consolidation may become more acute,” Fitch said.
The global rating agency estimates India’s economy to grow 6.9% this fiscal year ending March 2024 and 6.5% next year and anticipates a 75 basis point policy rate cut by the central bank to headline the end of 2024. Inflation will reduce to 4.7%. In the financial year 2025.
