Fitch Ratings affirmed India's long-term issuer default ratings at 'BBB-' with a stable outlook, according to a Tuesday rating action commentary.

India's rating is supported by its robust growth outlook and solid external finances, while still-weak fiscal metrics, including high deficits, debt, and debt-servicing costs, constrain the rating, the statement said.

The ratings agency forecasts India's economy to grow 6.4% in the fiscal year ending March 2027, down from an average of 7.4% over the previous three years.

It expects inflation to average 4.1% in the fiscal year ending March 2027, compared with 2.1% in the previous fiscal year.

Fitch forecasts the general government deficit to narrow to 7.3% of GDP in the fiscal year ending March 2027 from 7.5% in the previous fiscal year.

Meanwhile, government debt is expected to decline gradually to about 79% of GDP by the fiscal year ending March 2031, from 84.4% in the fiscal year ended March 2026.