New Delhi, August 25 (HS): Global rating agency Fitch Ratings has reaffirmed India’s sovereign credit rating at the lowest investment grade of ‘BBB’, maintaining a stable outlook. The announcement comes just days after S&P Global upgraded India’s rating for the first time in 18 years.

Fitch said India’s credit profile continues to be supported by strong growth momentum and robust external finances. The agency projected GDP growth at 6.5 percent for FY 2025-26, unchanged from the previous fiscal year, and well above the ‘BBB’ peer average of 2.5 percent.

The agency noted that while India’s pace of expansion has moderated over the past two years, structural fundamentals remain resilient. Fitch also pointed out that proposed reforms in the Goods and Services Tax (GST) regime, if implemented, could boost consumption and mitigate some growth risks.

Earlier this month, on August 14, S&P Global Ratings had upgraded India’s sovereign rating from 'BBB-' to 'BBB' with a stable outlook — marking an upgrade after nearly two decades.

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Hindusthan Samachar / Jun Sarkar