Moody’s retains India rating at Baa3, maintains stable outlook

Moody’s Ratings has retained India's credit rating at 'Baa3' and maintained a stable outlook owing to its large and fast-growing economy, sound external position and stable domestic financing base.

- Rituraj Baruah [e-mail]

In a note on Monday, the rating agency said these strengths provide resilience amid the impact of high US tariffs and other geopolitical tensions.

India's credit strengths are balanced by longstanding weaknesses on the fiscal side, which will remain, it said, while adding that strong gross domestic product (GDP) growth and gradual fiscal consolidation will lead to an only very gradual decline in the government's high debt burden, and will not be sufficient to materially improve weak debt affordability, especially as recent fiscal measures to reinforce private consumption erode the government's revenue base.