{"id":16277,"date":"2025-09-29T10:11:10","date_gmt":"2025-09-29T10:11:10","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/29\/moodys-affirms-indias-baa3-sovereign-rating-maintains-stable-outlook-economy-news\/"},"modified":"2025-09-29T10:11:10","modified_gmt":"2025-09-29T10:11:10","slug":"moodys-affirms-indias-baa3-sovereign-rating-maintains-stable-outlook-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/29\/moodys-affirms-indias-baa3-sovereign-rating-maintains-stable-outlook-economy-news\/","title":{"rendered":"Moody\u2019s Affirms India\u2019s Baa3 Sovereign Rating, Maintains Stable Outlook | Economy News"},"content":{"rendered":"


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Amid India\u2019s gradually improving fiscal indicators, Moody\u2019s Ratings affirmed India\u2019s long-term local- and foreign-currency issuer ratings<\/h2>\n
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Moody\u2019s retains India\u2019s Baa3 rating, says outlook stable<\/p>\n<\/figure>\n

Amid India\u2019s gradually improving fiscal indicators, Moody\u2019s Ratings on Monday affirmed India\u2019s long-term local- and foreign-currency issuer ratings, as well as the local-currency senior unsecured rating, at Baa3.<\/p>\n

\u201cThe stable outlook incorporates India\u2019s gradually improving fiscal metrics and resilient growth prospects compared with peers. However, fiscal accommodation in the context of the uncertain global macroeconomic outlook, including revenue-eroding measures, could impede progress towards debt reduction and exacerbate already weak debt affordability,” Moody\u2019s said in its statement.<\/p>\n

The rating agency maintained its outlook for India as stable. \u201cThe rating affirmation and stable outlook reflect our view that India\u2019s prevailing credit strengths, including its large, fast-growing economy, sound external position and stable domestic financing base for ongoing fiscal deficits will be sustained,” the agency noted.<\/p>\n

Moody\u2019s added that these strengths help India remain resilient to adverse external headwinds, especially as high US (Aa1 stable) tariffs and other international policy measures could hinder India\u2019s ability to attract manufacturing investment.<\/p>\n

While highlighting India\u2019s credit positives, Moody\u2019s pointed out long-standing fiscal challenges that persist. It said that strong GDP growth and gradual fiscal consolidation will drive only a slow decline in the government\u2019s high debt burden, insufficient to materially improve weak debt affordability\u2014particularly as recent fiscal measures aimed at boosting private consumption erode the government\u2019s revenue base.<\/p>\n

On US tariffs and H-1B visas<\/h3>\n

Moody\u2019s said that the US imposition of higher tariffs on India will have only limited negative effects on India\u2019s near-term economic growth.<\/p>\n

\u201cHowever, it may constrain potential growth over the medium to long term by hindering India\u2019s ambitions to develop a higher value-added export manufacturing sector,” the agency warned.<\/p>\n

The agency had earlier estimated that the 50% tariff on Indian goods announced by the US could trim India\u2019s growth by about 0.3 percentage points, reducing it from the projected 6.3% for 2025-26. Nevertheless, it noted that strong domestic demand and a resilient services sector would cushion much of the impact.<\/p>\n

Moody\u2019s also said it does not expect other US policy shifts\u2014such as restrictions on new applications for skilled-worker (H-1B) visas or potential levies on US firms outsourcing offshore\u2014to significantly affect India\u2019s workers\u2019 remittances or services exports.<\/p>\n

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\"Aparna<\/figure>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Click here<\/a> to add News18 as your preferred news source on Google. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
First Published:<\/span><\/p>\n
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September 29, 2025, 15:31 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> Moody\u2019s Affirms India\u2019s Baa3 Sovereign Rating, Maintains Stable Outlook<\/span><\/div>\n
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Last Updated:September 29, 2025, 15:31 IST Amid India\u2019s gradually improving fiscal indicators, Moody\u2019s Ratings affirmed India\u2019s long-term local- and foreign-currency issuer ratings Moody\u2019s retains India\u2019s Baa3 rating, says outlook stable Amid India\u2019s gradually improving fiscal indicators, Moody\u2019s Ratings on Monday affirmed India\u2019s long-term local- and foreign-currency issuer ratings, as well as the local-currency senior unsecured…<\/p>\n","protected":false},"author":1,"featured_media":1165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-16277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=16277"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16277\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/1165"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=16277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=16277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=16277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}