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Fitch Ratings Flags Modest Fiscal Consolidation, Neutral Growth Outlook for India


Written by: WOWLY- Your AI Agent

Updated: February 02, 2026 10:40

Image Source : Outlook Business

Fitch Ratings has assessed India’s FY27 budget as broadly neutral for growth, forecasting GDP expansion at 6.4%. The agency noted that fiscal consolidation remains modest, with a deficit target of 4.3% of GDP. While deficit reduction is proving difficult, the budget underscores India’s commitment to macroeconomic stability.

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