India's Sovereign Credit Rating Upgraded: A Testament to Economic Resilience

S&P Global upgraded India's sovereign credit rating from 'BBB-' to 'BBB', highlighting fiscal consolidation and economic growth. The move is celebrated by officials and sets positive expectations for future upgrades. With solid GDP growth and improved fiscal policies, India demonstrates resilience in the face of global economic changes.

In a landmark development, S&P Global has upgraded India's sovereign credit rating from 'BBB-' to 'BBB', acknowledging the country's significant strides in fiscal consolidation and infrastructure development, which outline its commitment to sustainable public finances.

Sanjeev Sanyal, an Economic Advisory Council member to the Prime Minister, praised the upgrade, arguing that India's economic performance merits even further recognition from international rating agencies. He anticipates similar ratings improvements from other agencies, emphasizing that India's credit rating may still be slightly conservative.

The upgrade is attributed to India's impressive economic momentum, demonstrated by an average GDP growth of 8.8% between 2022 and 2024, and supported by strong domestic consumption. S&P's assessment suggests continuous economic strength and fiscal improvement, projecting a government deficit reduction and a shift towards increased capital expenditure.

(With inputs from agencies.)