S&P Upgrades India's Sovereign Rating to BBB

Expects strong economic fundamentals to drive growth over next two-three years

- DIPAK MONDAL @New Delhi

S&P Global Ratings has upgraded India'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 was in January 2007 to 'BBB'.

The agency said India's prioritization 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 to three years, supported by effective monetary policy in anchoring inflation expectations.

Stable outlook assumes continued policy stability and high infrastructure investment, coupled with cautious fiscal and monetary measures aimed at easing India's elevated debt and interest burden.