Summary:

Moody’s raised India’s growth forecasts to 7.2% in 2024 and 6.6% in 2025, citing improved rural demand and robust growth in the industrial and services sectors. The services PMI remains above 60, and inflation is near the RBI’s target, supporting consumer consumption. Moody’s expects a capex cycle boost driven by increased capacity utilization, strong business sentiment, and ongoing government infrastructure spending.

Fitch affirmed India’s long-term foreign currency issuer rating at ‘BBB-’ with a stable outlook, highlighting strong medium-term growth that should enhance the country’s credit profile and external financial position. Improved fiscal credibility, adherence to deficit targets, and healthy revenues could lead to a modest reduction in debt. However, high deficits, debt burdens, and lagging structural metrics, such as governance indicators and GDP per capita, remain credit concerns compared to ‘BBB’ peers.

Source: IBEF 

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