The Finance Ministry welcomed S&P Global Ratings’ decision to upgrade India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and the short-term rating to ‘A-2’ from ‘A-3’, both with a Stable outlook. The move reflects India’s economic resilience, sustained fiscal consolidation, and robust growth trajectory.
This marks the first S&P upgrade since January 2007, when India was elevated to investment-grade ‘BBB-’. The ‘BBB’ rating is the lowest investment-grade level, indicating adequate capacity to meet financial obligations, albeit with moderate credit risk.
In a statement, the Finance Ministry said the upgrade underscores India’s commitment to fiscal discipline, infrastructure expansion, and inclusive growth, which are driving the nation towards its Viksit Bharat 2047 vision of becoming a developed economy.
Posting on social media platform X, the ministry added: “India has prioritised fiscal consolidation while maintaining strong infrastructure creation and inclusive growth, leading to this upgrade. Our leadership has ensured stability, making India’s economy truly agile, active, and resilient.”
S&P cited improved macroeconomic fundamentals, continued fiscal discipline, and India’s ability to sustain strong growth despite global challenges as key reasons for the rating change.
The decision comes after DBRS also upgraded India to ‘BBB’ earlier this year, further strengthening investor confidence.
The upgrade follows S&P’s May 2024 move to revise India’s outlook to Positive, signalling its recognition of the country’s long-term growth potential and structural reforms.
