Fitch lauds Indian economic recovery, ups outlook from negative to stable

The agency said that high inflation and hence high nominal GDP growth will benefit the debt-GDP ratio

Global ratings agency Fitch on Friday upgraded India’s long-term sovereign debt outlook to stable from negative, citing the economic recovery India has seen since the onset of the pandemic. The agency also said that the ongoing geopolitical issues would weigh less on India than they do on its peers.  

Fitch, however, reduced India’s gross domestic product (GDP) growth forecast for the current fiscal (FY23) to 7.8 per cent from 8.5 per cent, citing inflationary impacts of the global commodity price shock.

With this move. the big three ratings agencies — Fitch, Moody’s and S&P — all have a stable outlook