Fitch Ratings has reaffirmed India’s sovereign credit rating at ‘BBB-’

Current Context: On August 25, 2025, Fitch Ratings reaffirmed India’s sovereign credit rating at ‘BBB-’ with a stable outlook, citing strong GDP growth, external buffers, and economic resilience.

• India’s projected 6.5% growth for FY26 remains well above the ‘BBB’ median of 2.5%.
• Fitch praised India’s public capex push, GST reforms, and foreign exchange reserves as stabilizing factors.
• However, concerns persist over high fiscal deficits, elevated debt-to-GDP ratio, and weak governance indicators.
• The rating reflects a balance between India’s robust macro fundamentals and structural fiscal challenges.

Question:

Q.1 On August 25, 2025, Fitch Ratings reaffirmed India’s sovereign credit rating at which level?
a) BB+ with Negative Outlook
b) BBB- with Stable Outlook
c) BBB with Positive Outlook
d) BBB+ with Stable Outlook

Answer: b) Fitch maintained India’s rating at BBB- with a Stable Outlook. This is the lowest investment-grade rating.