Fashion
Fitch keeps India at ‘BBB-‘, projects 6.5% growth in FY26
Fitch said a strengthening record of delivering growth with macro stability and improving fiscal credibility should steadily lift structural metrics, including GDP per capita, while increasing the likelihood of a modest downward trend in debt over the medium term.
Fitch Ratings has affirmed India’s Long-Term Foreign-Currency IDR rating at BBB- with stable outlook, citing strong growth and external finances but high deficits and debt as weaknesses.
GDP is forecast to grow 6.5 per cent in FY26, inflation is contained, and reserves stand at $695 billion.
Risks include US tariff uncertainty, while sustained fiscal consolidation could aid an upgrade.
It projects GDP growth at 6.5 per cent in FY26, unchanged from FY25 and well above the BBB median of 2.5 per cent, supported by strong public capex and resilient consumption. Nominal GDP growth, however, is forecast to slow to 9 per cent in FY26, from 12 per cent in FY24, Fitch said in a press release.
A proposed 50 per cent US tariff on India poses a downside risk, though Fitch expects this to be negotiated lower. While exports to the US represent just 2 per cent of GDP, prolonged tariff uncertainty could dampen sentiment and reduce India’s competitiveness in supply chain shifts away from China.
Inflation remains contained, with headline inflation falling to 1.6 per cent in July 2025 on easing food prices and core inflation steady at around 4 per cent. Following a 100 basis points cut in the repo rate to 5.5 per cent, it sees scope for one more 25bp cut in 2025. Credit growth, which slowed to 9 per cent in May from 19.8 per cent a year earlier, is expected to recover under the easing cycle.
On the fiscal side, the central government deficit narrowed to 4.8 per cent of GDP in FY25 and is forecast at 4.4 per cent in FY26, in line with the medium-term target. The broader general government deficit is projected to fall from 7.8 per cent in FY25 to 7.3 per cent in FY26 and 7 per cent by FY28, while state deficits are expected to stabilise at 2.9 per cent from FY26.
India’s debt burden remains high at 80.9 per cent of GDP in FY25, set to edge up to 81.5 per cent in FY26 before gradually declining to 78.5 per cent by FY30, though Fitch cautions this path relies on nominal growth staying above 10 per cent. The interest-to-revenue ratio, at 23.5 per cent versus the BBB median of 9 per cent, continues to constrain fiscal flexibility.
India’s external position remains a key strength, with foreign exchange reserves rising to $695 billion by mid-August 2025, equivalent to eight months of external payments. The current account deficit is projected at 0.7 per cent of GDP in FY26, rising gradually to 1.5 per cent by FY28, added the release.
Governance continues to weigh on ratings, with India ranking below the median on World Bank indicators, but Fitch’s ESG relevance scores of ‘5’ for political stability and rights and ‘5[+]’ for rule of law and institutional quality reflect both resilience and challenges.
Fitch noted that an upgrade could follow stronger fiscal consolidation and a sustained revival in private investment-led growth, while weaker growth or rising debt burdens could trigger a downgrade.
Fibre2Fashion News Desk (SG)
The agreement covers the construction and operation of a 360-kilometre railway linking the main mining areas of Al-Shidiya and Ghor Al-Safi to the Port of Aqaba.
The United Aran Emirates and Jordan recently an agreement to develop a railway network in Jordan and establish the UAE-Jordan Railway Company.
The agreement covers the construction and operation of a 360-kilometre railway linking the main mining areas of Al-Shidiya and Ghor Al-Safi to the Port of Aqaba.
The project aims at transporting 16 million tonnes of phosphate and potash annually.
The project aims at transporting 16 million tonnes of phosphate and potash annually, with a total investment value of $2.3 billion. Both phosphate and potash are chemicals used in the textile industry.
The agreement was signed by UAE Minister of Energy and Infrastructure Suhail bin Mohamed Al Mazrouei and Jordan’s Minister of Transport Nidal Al-Qatamin.
The UAE-Jordan Railway Company was formally established as a joint venture between Abu Dhabi’s L’IMAD Holding Company (L’IMAD) and several Jordanian stakeholders, according to an official release in the UAE.
The joint venture will be responsible for the implementation, operation and maintenance of Jordan’s railway network through its executing arm, Etihad Rail, the developer and operator of the UAE’s national railway network.
The project will enhance Jordan’s export capabilities and logistics efficiency by directly linking phosphate and potash production sites to the Port of Aqaba, significantly reducing transport time and costs.
It will also support comprehensive economic development and open wide prospects for job creation across multiple sectors, leveraging the extensive expertise of Etihad Rail.
Fibre2Fashion News Desk (DS)
With more than two decades of experience in the sports industry, James brings a unique combination of skills, which will help PUMA use creative direction as an important strategic lever to establish itself as a top-3 global sports brand.
Puma has appointed James Carnes as senior vice president creative direction.
Reporting to Maria Valdes, he will oversee creative direction, innovation, and product excellence.
With over two decades of experience, including leadership roles at Adidas, he will align design strategy with business goals to strengthen Puma’s global brand appeal and market position.
“James is a very highly regarded leader in our industry and he has been instrumental in shaping some of the most influential performance and lifestyle products, labels, and platforms,“ said Maria Valdes. “With a strong background in industrial design and a deep understanding of both athletes and consumers, he will play an important role in getting our customers and consumers excited about PUMA once again.”
Until 2021, James held several leadership positions in design, creative direction and strategy at adidas, both in Herzogenaurach and Portland, Oregon. Most recently he worked as an independent consultant and investor in the wider industry.
At PUMA, James will align creative direction with the company’s overall strategic ambitions, set the seasonal direction for the Business Units and create a long-term look and feel for the brand across consumer touch points.
“Creative Direction is about more than seasonal trends and colours. It is about defining how PUMA holistically presents itself in the market, harnessing the company’s portfolio of world class innovation, and deeply connecting with consumers,” said James Carnes. “We have the amazing opportunity to modernize the image and style of one of the most iconic sports brands in the world and I look forward to leading our teams and collaborating with my colleagues to make this happen.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
China will step up building a higher-level China-Vietnam community with a shared future that carries strategic significance, Chinese President Xi Jinping said while holding talks with visiting Vietnamese President To Lam.
China and Vietnam are accelerating efforts to navigate bilateral trade towards a more balanced and sustainable course.
President Xi Jinping recently held talks with visiting Vietnamese President To Lam.
During the visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Xi said both countries should work together in their modernisation drive, accelerate the alignment of development strategies and prioritise infrastructure connectivity.
While meeting Chinese Minister of Commerce Wang Wentao during the state visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Wang said both sides should focus on implementing the high-level common perceptions, including raising bilateral trade turnover to $500 billion in future.
Hung urged China to expand imports of Vietnamese goods, broaden the list of products eligible for tariff preferences and further open its market. He also called for the mutual recognition of quarantine results for agro-forestry-fishery products, facilitation of Vietnamese exports via cross-border e-commerce, and expansion of Vietnam’s trade promotion offices across Chinese localities, according to a Vietnamese news agency.
China will continue to support Vietnam in setting up additional trade promotion offices, following those already established in Chongqing, Hangzhou and Haikou, Wang responded.
China also expressed readiness to support Vietnam’s stronger exports through cross-border e-commerce, encouraging greater visibility of the Vietnam National Pavilion on Chinese e-commerce platforms beyond JD.com to better promote Vietnamese products to Chinese consumers.
China has consistently been Vietnam’s largest trading partner and second-largest export market, while Vietnam continues to be China’s biggest trading partner in the Association of Southeast Asian Nations (ASEAN).
Fibre2Fashion News Desk (DS)
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