In a report released on September 6th , rating agency Moody’s said India’s credit profile reflects key strengths including its large and diversified economy with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt.
“The Indian economy has higher capital buffers and greater liquidity and as such, the risk from the negative feedback between the economy and financial system are receding,” the agency said. It allotted a Baa3 rating for the Government of India with a stable outlook.
Moody’s has forecast India’s real GDP to grow at 7.6% in FY23 and 6.3% in FY24. “We expect India’s general government debt burden to have peaked at around 84% of GDP in the fiscal year ended March 2021. We expect debt to stabilize around 80% of GDP, still significantly higher than the Baa-rated peer median of around 55%,” it added.
Last updated: December 26th, 2025
