Moody’s has reaffirmed India’s long-term sovereign credit rating at Baa3 and maintained a “stable” outlook. The rating agency cited India’s strong economic momentum, healthy foreign interchange reserves, and robust domestic funding for fiscal deficits as key supports.
However, Moody’s sounded caution over rising fiscal pressures: it noted that tax cuts designed to stimulate consumption have somewhat eroded revenue bases, and warned that further upgrades would depend on India strengthening its public debt sustainability and fiscal discipline.
