This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile • India's robust economic expansion is having a constructive impact on its credit metrics. We expect sound economic fundamentals to underpin the growth momentum over the next two to three years. • High general government deficits to decline gradually over the next few years. Likewise, debt to remain high for an extended period, although fast nominal GDP growth will stabilize the debt-to-GDP ratio. • Quality of government spending has improved with rising capital expenditure. This, alongside strong private consumption, will drive economic expansion such that GDP growth should remain well above the median for peers at a similar level of income. • India
