Fitch Ratings on Friday revised its outlook on India`s long-term foreign currency Issuer Default Rating (IDR) to "Stable" from "Negative," citing diminished downside risks to medium-term growth.

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The ratings agency said risks to the country`s medium-term growth lessened due to rapid economic recovery and easing financial sector weakness, despite near-term headwinds from the global commodity price shock.

"High nominal GDP growth has facilitated a near-term reduction in the debt-to-GDP ratio," Fitch said in a statement.

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Fitch lowered India`s economic growth for 2022/23 to 7.8% from the 8.5% it had forecast in March, saying the inflationary impacts of the global commodity price shock were dampening some of the positive growth momentum.

However, Fitch`s projection was ahead of Reserve Bank of India`s projection of 7.2%.

In 2021/22, India`s economic growth was 8.7%.

Fitch kept its rating of BBB- on India.