Risk to India's sovereign rating from external pressures limited: Fitch

Country relatively insulated from volatility due to limited reliance on external financing, says rating agency

India’s external buffers appear sufficient to cushion risks from rapid monetary policy tightening in the US and high global commodity prices, according to Fitch Ratings.

“External finances are becoming less of a strength in India’s credit profile, but we expect foreign-exchange reserves to remain robust and India’s current-account deficit to be contained at a sustainable level”, said the rating agency in a statement on Wednesday.

Fitch, in June 2022, revised the outlook on India's long-term foreign-currency issuer default rating from “negative” to “stable” and affirmed the IDR at 'BBB-'.

The agency said public finances are key to the rating. They are only affected