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

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…