Fitch Affirms India at BBB- With Stable Outlook, Sees 6.4% Growth

Fitch said it sees no durable risk to India's growth prospects from the US-Iran conflict or the broader West Asia energy shock. The agency pointed to a strengthening record of macroeconomic stability and improving policy credibility as factors that should underpin continued strong growth.

"High growth should also support a sustained improvement in structural credit metrics and increase the likelihood that government debt will trend down," Fitch added.

The government's FY27 budget set the debt-to-GDP ratio at 55.6%, down from 56.1% in the previous year. New Delhi has set a target of 50% by March 2031.

Fitch's assessment comes as some other emerging-market sovereigns have faced rating pressure from higher global interest rates and geopolitical tensions. The stable outlook implies the agency sees India's credit profile as resilient to those forces over the near term.