India Secures First Sovereign Credit Rating Upgrade in 18 Years

In a landmark development, India has received its first sovereign credit rating upgrade in nearly two decades. S&P Global Ratings has increased the nation's long-term rating to 'BBB' from 'BBB-', while the short-term rating has been raised to 'A-2' from 'A-3', maintaining a stable outlook. The announcement, heralded by the Indian Ministry of Finance, is perceived as a significant milestone in India's economic journey.

Highlighting India's economic resilience, Prime Minister Narendra Modi's administration has prioritized fiscal discipline alongside infrastructure and inclusive growth. This commitment has been integral in securing the latest upgrade. The Finance Ministry acknowledged these efforts as instrumental for India's continued robust growth and alignment with the government's long-term goal of a developed India by 2047.

Union Minister Piyush Goyal echoed these sentiments, stressing the importance of fiscal consolidation and infrastructure expansion in achieving inclusive growth. The last upgrade occurred in 2007 when India was rated 'BBB-', indicating sustained economic resilience and policy consistency.

S&P also revised its transfer and convertibility assessment of India to 'A-', reflecting enhanced external and monetary stability. The stable outlook affirms confidence in India's economic trajectory and policy reforms aimed at reducing debt burdens over time. This upgrade follows another from DBRS Morningstar, both expected to bolster investor confidence in India's economic policies and reforms.