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Fitch: India outlook remains negative due to Covid surge

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    Recent surge in coronavirus cases poses increasing downside risks to the FY22 outlook stated ratings agency Fitch maintaining it's 'BBB-' sovereign rating with a negative outlook.

    Fitch expects GDP growth of 12.8% in FY22, moderating sharply to 5.8% in FY23.

    Sounding cautious the rating agency stated. “The medium-term debt trajectory is core to our rating assessment, as higher debt levels constrain the government’s ability to respond to future shocks and could lead to a crowding out of financing for the private sector."

    Fitch however did state that the second wave of virus cases may delay the recovery, but is unlikely to derail it.

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