FX.co ★ Fitch Affirms India’s Rating at BBB-

Fitch Ratings has reaffirmed India's sovereign rating at 'BBB-' with a stable outlook, attributing this decision to the country's robust economic growth while also highlighting weak fiscal metrics. The potential impact of U.S. tariffs presents a moderate challenge to India’s growth forecast, which remains at 6.5% for the current fiscal year, consistent with projections for FY25. However, the actual impact is uncertain since exports to the U.S. only constitute approximately 2% of India's GDP. Domestic demand is expected to continue being strong, bolstered by ongoing public capital expenditure projects and consistent private consumption. Nonetheless, private investment is likely to stay restrained, particularly considering increased risks associated with U.S. tariffs. Proposed reforms to the Goods and Services Tax (GST) could mitigate these growth risks if implemented, as they would bolster consumption. Additionally, Standard & Poor's maintains India’s credit rating at BBB with a stable outlook, while Moody's rating for India is set at Baa3 with a stable outlook. DBRS also reported India's credit rating at BBB with a stable outlook.