Higher rating to lure global investors

S&P move to help lower cost of external debt, say economists

- FE BUREAU

S&P GLOBAL'S RATING upgrade for India will help make the country a more attractive investment destination and lower the cost of its external debt, economists said. According to Rajiv Kumar, former vice chairman, Niti Aayog, the upgrade augurs very positively for the Indian economy, and given S&P's standing in the global credit markets, other rating agencies will likely follow suit.

"This will certainly lower the cost of raising external debt as the country's risk perception among foreign investors will improve as a result of this upgrade," he told FE, adding that it would also lead to an increase in India's weight in the foreign investors' portfolio.

DK Srivastava, chief policy advisor at EY India, said the upgrade is welcome news both for the Indian government and corporate sector.