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Informist, Thursday, Aug. 14, 2025

 

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--Econ affairs secy: See other rtg agencies following S&P rating upgrade 
--Econ affairs secy:Rtg upgrade shows India commitment to fisc consolidation 
--Govt: Expect other rtg agencies to note factors which led to S&P upgrade 
--Fin min: Welcome S&P's decision to upgrade India's rating to BBB 
--Fin min: Rating upgrade reaffirms Indian econ agile, resilient, active 
--Fin min: Rating upgraded as India prioritised fisc consolidation 
--Fin min: Rating upgraded as India maintained strong infra creation drive 
--Fin min: Rating upgraded as India maintained inclusive growth approach 
--Fin min: India to continue buoyant growth momentum, undertake more reforms 

 

NEW DELHI – The Indian government expects other global rating agencies to follow S&P Global Ratings and upgrade India's long-term sovereign credit rating, Economic Affairs Secretary Anuradha Thakur said Thursday. "We do expect that other rating agencies will also take note of the factors which have led to an upgrade by S&P and follow suit," Thakur told Informist.

 

S&P Global Ratings upgraded India's long-term unsolicited sovereign credit rating to 'BBB' from 'BBB-' on Thursday, citing the Indian economy's resilience and sustained fiscal consolidation. With the upgrade, S&P has become the first major ratings agency to upgrade India one rung above the lowest investment grade rating. Fitch Ratings and Moody's Ratings both have India at the lowest rung of investment grade, with a 'stable' outlook.

 

"Rating upgrade shows India's commitment to fiscal consolidation," Thakur said. 

 

The upgrade reflects India's buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations, S&P Global said. "Together with the government's commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics."

 

The government has been working on its weak debt metric, which rating agencies have held against India as a detriment to its ratings upgrade. 

 

"India has prioritised fiscal consolidation, while maintaining its strong infrastructure creation drive and inclusive growth approach, that has led to the upgrade," the finance ministry said in a post on X, formerly called Twitter. "The ratings upgrade reaffirms that under Prime Minister Narendra Modi's leadership, providing stability, India's economy is truly agile, active, and resilient," the ministry said. "India will continue its buoyant growth momentum and undertake steps for further reforms to attain the goal of Viksit Bharat by 2047."

 

The Centre last year announced its intent to shift its fiscal consolidation benchmarking to metrics favoured by rating agencies, such as the debt-to-GDP ratio and monitoring interest expenses. The Budget documents for FY26 said the government aims to keep the fiscal deficit each year such that the central government debt will be on a declining path as a percentage of GDP. The government aims to reduce the Centre's debt to 50% of GDP, plus or minus 1%, by 2030-31 (Apr-Mar) from 56.1% in FY26.

 

S&P said the quality of government spending had improved in the last five to six years, noting that capital expenditure is now 3.1% of GDP in FY26 from 2?ecadeago. The infrastructure spending is also being pushed by states, and improvements in infrastructure and connectivity will remove chokepoints that were hindering long-term growth. The rating agency estimates India's GDP to grow at 6.5% in FY26, in line with the Reserve Bank of India's projection.  End

 

Reported by Sagar Sen and Priyasmita Dutta

Edited by Saji George Titus

 

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