Fitch retains ‘negative’ outlook

After Standard & Poor's, Fitch Ratings also retained its "negative" outlook on India's sovereign credit rating, citing concerns about slowing economic growth, persistent inflationary pressures and an uncertain fiscal outlook.

The negative outlook suggests the possibility of downgrading the sovereign rating was more than 50 per cent in the next 12-24 months, it said.

The finance ministry said it is not worried about the threat of ratings downgrade by global agencies like Fitch as it is moving on the right track and will restrict fiscal deficit to 5.3 per cent of the GDP this fiscal.

"We are not worried. We have been saying we are on right track. But people still distrust us and ask whether we will able to achieve fiscal deficit target... We will adhere to fiscal consolidation roadmap," Department of Economic Affairs (DEA) Secretary Arvind Mayaram said.

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