Fitch raises Indias rating

Indias credit rating outlook on local currency debt was raised to stable from negative by ratings agency Fitch,as windfall gains from sale of wireless airwaves raised expectations of a steeper cut in country8217;s fiscal deficit.

Inflows of close to Rs 1 lakh crore through the sale of 3G airwaves and broad band spectrum,against a budgeted estimate of Rs 35,000 crore,has boosted the chance of the Centre achieving the fiscal deficit target of 5.5 per cent in the current financial year and 4.5 per cent in the next.

The agency has revised Indias growth forecast for 2010-11 up to 8.5 per cent from 7 per cent on the signs of a strong growth momentum.

Indias strong growth prospects and the one-off positive impact from the telecom auctions underpin Fitchs forecast that the governments debt-to-gross domestic product ratio will decline, Fitch said.