Balances fiscal discipline and growth, says Fitch

New Delhi: India’s budget demonstrates the ongoing commitment to maintaining macro stability through a gradual path of government debt reduction balanced against a still-robust capex program to enhance growth prospects, Fitch Ratings said on Monday.

While the budget did not flag specific large-scale reform announcements, Fitch said it expects more reforms to be forthcoming, particularly on the deregulation agenda. Strong GDP growth is driving positive momentum in several of India’s sovereign credit metrics and if sustained, could improve the credit profile over time, even as lingering fiscal challenges remain, it said.

Building on recent reform momentum should help accelerate private investment and give greater upside and resilience to India’s potential growth, Fitch added.