ISTANBUL

Fitch Ratings said Thursday it affirmed India's long-term foreign currency issuer default rating at BBB- with a stable outlook.

The rating agency said India's rating is supported by its strong medium-term economic growth outlook, which will continue to drive improvement in structural aspects of its credit profile, including its share of GDP in the global economy.

"Nevertheless, fiscal metrics remain a credit weakness, with deficits, debt and debt service burden all high compared to 'BBB' range peers," it said in a statement. "Lagging structural metrics, including governance indicators and GDP per capita, also weigh on the rating."

India is set to remain among the fastest-growing economies globally, according to Fitch, which forecasts GDP growth of 7.2% in the fiscal year ending March 2025 and 6.5% in the following fiscal year.

"Private investment in real estate is likely to remain strong and there are signs of a nascent pick-up in manufacturing investment," said the statement.

Fitch said it estimates India's potential GDP growth at 6.2%, supported by its infrastructure push, strong services sector, and solid private investment outlook.