Fitch Ratings revised India’s outlook from ‘negative’ to ‘stable’ on Friday, June 10, 2022, citing fading downside risks to medium-term growth thanks to a rapid economic recovery and easing of weaknesses in the financial sector.
The global rating firm has, however, lowered its GDP growth forecast for 2022-23 from 8.5% projected in March to 7.8% due to the impact of inflation on the growth momentum
Despite near-term headwinds from the global commodity price shock, Fitch said it expects robust growth for India relative to its similarly rated peers, but the country’s public finances remain a credit weakness with the debt ratio broadly stabilising, based on its expectations of ‘persistent large deficits’.
