New Delhi, May 9 : Fitch Ratings has reaffirmed India’s long-term foreign-currency issuer default rating (IDR) at ‘BBB-’ with a stable outlook, citing the country’s robust growth prospects and resilient external finances. India’s large domestic market and strong growth potential make it an appealing destination for foreign firms, but weak public finances remain a concern, the rating agency said.

It forecast that India will be among the fastest-growing Fitch-rated sovereigns globally at 6% in the fiscal year ending March 2024 (FY24), supported by resilient investment prospects. However, headwinds from elevated inflation, high interest rates, and subdued global demand, along with fading pandemic-induced pent-up demand, are expected to slow growth from the FY23 estimate of 7.0% before rebounding to 6.7% by FY25.