Fitch Ratings on Tuesday warned that deterioration in India’s fiscal outlook as a result of lower growth could put pressure on its sovereign rating at a time when government is contemplating to announce a stimulus package for the MSMEs and informal sector. “Fiscal easing to support growth is likely to be announced, given the extended lockdown.
Further deterioration in the fiscal outlook as a result of lower growth or fiscal easing could pressure the sovereign rating in light of the limited fiscal headroom India had when it entered this crisis," the rating agency said in a statement.
Fitch said its assessment of India’s rating in such a scenario would be guided by its judgement of the country’s probable medium-term fiscal path in the
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