In its second-quarter Sovereign Credit Overview for Asia Pacific region, Fitch said the growth rate will accelerate as money supply has recovered to its pre-demonetisation level and disruptions related to the rollout of GST have diminished.
It said India’s ratings balance a strong medium-term growth outlook and favourable external balances against a weak fiscal position and difficult business environment.
The rating agency said that the country’s business environment is likely to improve gradually with the implementation and continued broadening of the government’s structural-reform agenda.