Fiscal Consolidation and Growth: A Boost to India’s Credit Profile

India’s focus on fiscal consolidation and growth has reinforced its credit profile, according to recent reports. The Union Budget 2025-26 targets a fiscal deficit of 4.4% of GDP, down from 4.8% in 2024-25, while emphasizing capital expenditure to drive long-term growth. Revenue expenditure is set to decline to 11% of GDP, with capex rising to 4.3%, signaling prudent debt management. Experts highlight that this balanced approach supports macroeconomic stability and sustains India’s position as the fastest-growing major economy globally.

Sources: ANI News, Economic Times, BusinessWorld