S&P Upgrades India Rating

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New Delhi, India – S&P Global Ratings has upgraded India’s sovereign credit rating from BBB- to BBB, signaling international recognition of the country’s strong economic fundamentals, disciplined fiscal management, and growing global influence. The short-term rating was also raised from A-3 to A-2, while the long-term outlook remains stable, reflecting confidence in India’s sustained growth trajectory.

The Finance Ministry hailed the upgrade as a reflection of Prime Minister Narendra Modi’s leadership, emphasizing stability, fiscal discipline, and a focus on infrastructure and inclusive development. “India’s economy is agile, resilient, and poised for continued growth,” the ministry stated, noting that the country remains committed to reforms under the Viksit Bharat 2047 vision.

Union Minister of Commerce & Industry Piyush Goyal highlighted fiscal consolidation, infrastructure expansion, and inclusive growth as cornerstones of India’s economic strategy. “At the heart of our journey lies economic resilience and our government’s commitment to a better life for every Indian,” he said.

Experts welcomed the upgrade as long overdue. Sanjeev Sanyal, Member of the Prime Minister’s Economic Advisory Council, called it “much required,” noting that India’s fundamentals deserved a higher rating. Sonal Badhan, Economist at Bank of Baroda, predicted the upgrade would boost investor confidence, attract capital inflows, and potentially reduce bond yields.

Rishi Shah, Partner at Grant Thornton Bharat, described the move as “long overdue,” praising India’s fiscal and monetary management since the COVID-19 pandemic. “India’s fundamentals were strong, and this rating upgrade reflects excellent policy execution compared to global peers,” Shah said.

Manoranjan Sharma, Chief Economist at Infomerics Ratings, noted that the upgrade enhances India’s global financial clout and improves borrowing terms for Indian firms internationally. “This recognition strengthens India’s macroeconomic position and signals confidence in the government’s policy direction,” he said.

S&P also revised its transfer and convertibility assessment for India to A- from BBB+, citing an improved monetary and external environment. Analysts expect the upgrade to enhance India’s attractiveness to global investors, lower borrowing costs, and further reinforce the nation’s robust fiscal and economic management.

While all major rating agencies now consider India investment grade, S&P’s upgrade is the most significant recent change, reflecting the country’s resilience, policy continuity, and capacity for sustained economic growth.