India

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile •On-track economic recovery, with trend growth stronger than peers likely to extend into fiscal years 2024-2025 •Slower fiscal consolidation in latest budget, with high general government deficit set to decline only gradually over the next few years. Rising capital expenditure to be supportive of economic growth. •Long-term growth to remain well above the median for peers at a similar level of income. •Debt to remain high for an extended period, although fast nominal GDP growth should stabilize the debt-to-GDP ratio. •Ruling government retains solid support of the electorate, which may support further economic reforms as the economy recovers. •Lower inflation to ease the

...India's dynamic and fast-growing economy, strong external balance sheet, and democratic institution support policy predictability and anchor the sovereign credit ratings. Counterbalancing these strengths are the government's weak fiscal performance and burdensome debt stock, as well as low GDP per capita....

Full Report