Fitch has affirmed India's long-term foreign currency debt rating at BBB-, the lowest rung of investment-grade territory. The long-term issuer default rating has also been confirmed at BBB-.

The outlook remains Stable. Fitch stated that India's rating is supported by its strong growth prospects and robust external financial fundamentals. The high growth rate should also facilitate the continued improvement of structural credit indicators, raising the likelihood of a declining trend in government debt.

The report further noted that structural indicators, including governance metrics and per capita GDP, remain weak, which constrains India's rating.