Global ratings agency Fitch Ratings upgraded the outlook on India’s sovereign rating to “stable” from “negative” noting the government’s steps to reduce fiscal deficit.
The rating agency said the Indian authorities have been successful in containing the upward pressure on the Union Budget deficit in the face of a weaker-than-expected economy.
Fitch also took note of the government’s move in addressing structural impediments to investment and growth.
India has been battling a ratings downgrade after deterioration of its public finances and slowdown in growth, but since last September, the government has taken steps to trim the fiscal deficit.
The move by Fitch comes even as another rating agency Standard & Poor’s refusing to upgrade the outlook on India’s rating to from negative. Like Fitch, Moody’s also has a stable outlook.
Fitch said it expects the government to meet broadly its 2013-14 Budget deficit target of 4.8 percent of GDP and to gradually reduce the high level of public debt over the medium-term.
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