Fitch: India’s outlook has been upgraded from negative to stable

India’s sovereign rating was upgraded to Stable from Negative by Fitch Ratings on Friday, citing fewer negative risks to medium-term development as a result of the country’s strong economic recovery.

Fitch Ratings has maintained the ‘BBB-‘ rating.

“Despite near-term concerns from the global commodity price shock,” it continued, “the Outlook revision reflects our judgment that negative risks to medium-term growth have decreased due to India’s strong economic recovery and reducing financial sector weaknesses.”

However, due to the inflationary impact of the global commodity price shock, it cut its economic growth prediction for the current fiscal year (April 2022 to March 2023) from 8.5 percent in March to 7.8 percent.