S&P Upgrades India's Sovereign Rating to BBB

Expects strong economic fundamentals to drive growth over next two-three years. Last time, S&P upgraded the country's ratings in january 2007 to 'BBB'

- DIPAK MONDAL

In a shot in the arm for the Indian government, S&P Global Ratings has upgraded the country's long-term sovereign credit rating to 'BBB' from 'BBB-', with a stable outlook, citing robust economic growth, effective monetary policy, and the government's sustained focus on fiscal consolidation. The last time, S&P upgraded India to BBB was in January 2007. The rating upgrade comes days after Donald Trump had taken a jibe at India calling it a dead economy.

The agency said India's prioritisation of fiscal consolidation, along with strong infrastructure investment push, reflects a clear political commitment to sustainable public finances. It expects strong economic fundamentals to continue driving growth over the next two-three years, supported by effective monetary policy in anchoring inflation expectations.