US EditionIndia Receives First S&P Sovereign Rating Upgrade in 18 Years
S&P cited India’s 8.8% average GDP growth from 2022 to 2024 and improved fiscal discipline as key reasons for the first sovereign rating upgrade in 18 years.
- On Thursday, S&P Global Ratings upgraded India’s long-term rating to BBB from BBB- for the first time in 18 years since January 2007.
- The upgrade reflects smarter infrastructure spending and inflation kept within the RBI’s 2–6 per cent target, with real GDP growth averaging 8.8 per cent over fiscal 2022–FY2024.
- As a result, global investors could boost foreign investment and set up manufacturing units, and the government and Indian companies may borrow at lower interest rates, according to S&P Global Ratings.
- However, the ratings agency warned S&P Global Ratings stressed the need for continued careful spending to reduce debt and maintain fiscal discipline.
- S&P projects continued healthy growth; further upgrades hinge on fiscal deficits narrowing and public debt falling below 6% of GDP, according to S&P Global Ratings.
21 Articles
21 Articles
India receives first S&P sovereign rating upgrade in 18 years
The last upgrade by the US-based agency came in January 2007. This latest revision reflects India’s position as one of the world’s best-performing economies, with real GDP growth between fiscal years 2022 and 2024 averaging 8.8%.
S&P’s top sovereign ratings executive says India’s first upgrade in 18 years based on a long-term view
S&P Global's YeeFarn Phua said the credit ratings agency has begun to see a lot of India’s economic growth flow into credit metrics, and is hoping to see a much better trajectory in the coming years.
Global rating agency S&P has raised India's sovereign credit rating to BBB, which was earlier BBB-. The agency has also said that the impact of tariffs on India will be minor.
S&P upgrades India’s sovereign rating to BBB, says among ‘best performing economies in the world’
“India remains among the best performing economies in the world. It staged a remarkable comeback from the pandemic with real GDP growth over fiscal 2022 to fiscal 2024 averaging 8.8 per cent, the highest in Asia-Pacific,” said S&P Global Ratings.
S&P upgrades India's sovereign rating to 'BBB' on growth, fiscal discipline
The move comes more than a year after S&P revised India’s outlook to positive from stable in May 2024, on the back of robust growth and improved expenditure quality. The rating agency also revised India’s transfer and convertibility assessment to ‘A-’ from ‘BBB+’.
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