New Delhi: Fitch Ratings has maintained India’s sovereign ratings unchanged, while its outlook remains negative. It believes that the second wave of corona virus may delay economic recovery. But Fitch Ratings expressed hope that the train will not derail.
While maintaining the rating on ‘-BBB’, this agency said that India’s growth outlook and strength in the medium term are strong. Foreign exchange reserves are high amidst high government debt, while there are weaknesses and structural pressures in the financial sector.
The agency said that the negative outlook indicates that there is a situation of debt instability. India’s public financial situation is looking very bad, due to which the fiscal situation seems difficult.
Higher fiscal deficit and increasing pressure from government schemes will affect India’s growth rate, India’s GDP growth may be better seen in the medium term, which will lower the debt ratio.
Arun Singh, chief global strategist at Dun & Breadstries, said the second wave of Corona virus could have an impact on economic recovery, which could reduce the country’s economy by two per cent.