Fitch keeps India's sovereign rating unchanged

Fitch Ratings Thursday kept India's sovereign rating unchanged at 'BBB-', the lowest investment grade with a stable outlook, saying risks to macroeconomic outlook are significant.

In a statement, Fitch said it expects India's real GDP growth to rise to 7.8 per cent in the fiscal year ending March 31, 2019, from 6.7 per cent in FY2017-18.

But for the following two financial years, it said, the growth may decelerate to 7.3 per cent due to "downside risks from tightening financial conditions, weak financial-sector balance sheets and high international oil prices".

"Risks to the macroeconomic outlook are significant, and include a drop in credit growth, resulting from further problems in the banking or shadow-banking sector," it said.