S&P Upgrades India’s Credit Rating to BBB, Citing Robust Growth and Fiscal Discipline

New Delhi, August 15 (TNA) Global ratings agency S&P Global has upgraded India’s long-term sovereign credit rating from BBB- to BBB for the first time in nearly two decades, affirming the country’s position as one of the best-performing major economies worldwide. The outlook remains stable.

The upgrade comes amid India’s impressive average real GDP growth of 8.8% between fiscal years 2022 and 2024—the highest in the Asia-Pacific region—achieved despite global economic uncertainties following the COVID-19 pandemic and geopolitical conflicts in Ukraine and West Asia.

S&P credited the rating boost to India’s strong economic fundamentals, improved government spending quality, and the ongoing commitment to fiscal consolidation aimed at reducing the country’s overall debt. The move also reflects stable inflation management and sound monetary policies.

Highlighting the upgrade’s significance, S&P noted that India’s economic momentum is expected to continue, projecting GDP growth of 6.5% for fiscal 2026 and signalling the possibility of further rating improvements if fiscal prudence is sustained.

The rating action effectively dismisses U.S. President Donald Trump’s previous characterisation of India as a “dead economy,” showcasing instead its rising global stature. However, S&P cautioned that the rating could be downgraded if India’s political commitment to fiscal consolidation weakens or if a structural slowdown undermines debt sustainability.

This rating upgrade marks a milestone in India’s economic journey and serves as a strong vote of confidence from one of the world’s leading credit rating agencies.