S&P Upgrades India Rating

HE ALSO NOTED that the nation's exposure to the US in terms of exports to gross domestic product (GDP) is just about 2%.

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Any shift in India's oil supplies away from Russia, if fully borne by the government, will have a modest impact on government finances given the narrow price differential between Russian crude and current international benchmarks, S&P said.

It also said further upgrades are possible if fiscal deficits narrow significantly, bringing the net change in general government debt below 6% of GDP on a sustained basis.

S&P expects India's debt-to-GDP ratio to decline to 78% by 2028-29, from 83% in FY25. The fiscal consolidation by the government after the pandemic-induced expansion was rather quick and qualitatively superior—general government debt was brought down from 89.5% of the gross domestic product (GDP) in FY21 to 80.7% in FY25, according to government data.