Fitch affirms India's rating on robust growth, external finances; GST reforms to support consumption
GST
Dated:- 25-8-2025
PTI
New Delhi, Aug 25 (PTI) Fitch Ratings on Monday retained India's sovereign credit rating at 'BBB-' with a stable outlook on robust growth and external finances.
The proposed 50 per cent US tariffs on India pose a moderate downside risk to its 6.5 per cent GDP growth forecast for the current fiscal.
“Proposed goods and services tax (GST) reforms, if adopted, would support consumption, offsetting some of these growth risks,” Fitch added.
The Centre has proposed to the Group of Ministers on GST rate rationalisation a 2-tier rate structure of 5 and 18 per cent for 'merit' and 'standard' goods and services
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k remains strong relative to peers, even as momentum has moderated in the past two years,” Fitch said, adding that it estimates medium-term growth potential at 6.4 per cent led by strong public capex, a private investment pick-up and favourable demographics.
“The government's deregulation agenda and GST reforms should support incremental growth. Passage of other significant reforms, especially on land and labour laws, seems politically difficult. Still, some state governments are likely to advance such reforms. India has signed several bilateral trade agreements, but trade barriers remain relatively high,” Fitch said.
The rating agency said a strengthening record on delivering growth with macro stability and improving fiscal credibility s
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