After 18 Years, India Scores S&P Upgrade Amid Tariff Gloom

India won its first sovereign rating upgrade from S&P Global Ratings since 2007 on Thursday, raising its long-term credit rating by a notch.

- Rhik Kundu

Indian government debt, which has remained at S&P's lowest investment grade of BBB- for 18 years, now stands a level higher at BBB.

The agency cited the economy's resilience, fiscal consolidation and favorable policies to keep inflation in check for its decision, which comes three months after DBRS Morningstar made a similar upgrade in May. S&P also credited India's implementation of reforms such as goods and services tax, the bankruptcy code, and a sound monetary policy framework.

The Union finance ministry, which has long pushed for a rating upgrade, welcomed the decision. "India has prioritized fiscal consolidation, while maintaining its strong infrastructure creation drive and inclusive growth approach, which has led to the upgrade. India will continue its buoyant growth momentum and undertake steps for further reforms to attain the goal of Viksit Bharat by 2047," the ministry posted on X.

The development comes as a spot of good news for the economy navigating tariff wars in a volatile world. Better credit rating strengthens India's standing in global capital markets, promising cheaper and more predictable access to funds for both the government and private sector over time.