Debt Reduction Pace Still Lagging: Fitch

New Delhi: Fitch Ratings on Monday said India’s pace of debt reduction is gradual, leaving room for a downside risk to sovereign rating in the eventuality of a significant economic shock.

However, the rating agency expressed confidence in India’s ability to stick to its medium-term fiscal framework, which aims to reduce debt and bring it on a downward trajectory over time.

“Increased confidence that the government can adhere to this medium-term fiscal framework and keep debt firmly on a downward path, would be positive for the sovereign rating over time. “Still, the pace of debt reduction is gradual, which leaves open downside risks from a large economic shock,” said Jeremy Zook, Director, Fitch.