{"id":5217,"date":"2025-08-14T13:30:02","date_gmt":"2025-08-14T13:30:02","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/08\/14\/exhili-rating-for-india-how-sp-upgrade-strengthens-negotiating-power-in-trade-talks-business-news\/"},"modified":"2025-08-14T13:30:02","modified_gmt":"2025-08-14T13:30:02","slug":"exhili-rating-for-india-how-sp-upgrade-strengthens-negotiating-power-in-trade-talks-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/14\/exhili-rating-for-india-how-sp-upgrade-strengthens-negotiating-power-in-trade-talks-business-news\/","title":{"rendered":"‘Exhili-Rating’ For India: How S&P Upgrade Strengthens Negotiating Power In Trade Talks | Business News"},"content":{"rendered":"


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The agency has raised India’s long-term unsolicited sovereign credit ratings to ‘BBB’\u00a0from ‘BBB-‘, and its short-term ratings to ‘A-2’\u00a0from ‘A-3’<\/h2>\n
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This is seen as a significant acknowledgement of India’s growth story, especially given the cynicism within the Congress and Rahul Gandhi endorsing American President Donald Trump’s comment that India was a dead economy.
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The mood is upbeat with the S&P rating system upgrading India. They have raised India\u2019s long-term unsolicited sovereign credit ratings to \u201cBBB” from \u201cBBB-\u201c, and its short-term ratings to \u201cA-2″ from \u201cA-3″. The outlook on the long-term rating is stable. This is seen as a significant acknowledgement of India\u2019s growth story, especially given the cynicism within the Congress and Rahul Gandhi endorsing American President Donald Trump\u2019s comment that India was a dead economy<\/a>.<\/p>\n

The global ratings agency stated, \u201cThe stable outlook reflects our view that continued policy stability and high infrastructure investment will support India\u2019s long-term growth prospects. That, along with cautious fiscal and monetary policy that moderates the government\u2019s elevated debt and interest burden, will underpin the rating over the next 24 months.”<\/p>\n

This is significant considering the uncertainty over the Indian market and trade, given the face-off between India and the US. There is concern that high tariffs could impact India\u2019s economy. However, the agency acknowledged these apprehensions and said, \u201cThough the U.S. is India\u2019s largest trading partner, we do not expect the 50% tariffs (if imposed) to pose a material drag on growth. India\u2019s exports to the U.S. constitute about 2% of GDP. Factoring in sectoral exemptions on pharmaceuticals and consumer electronics, the exposure of Indian exports subjected to tariffs is lower at 1.2% of GDP. Though this may eventually result in a one-off hit to growth, we envisage the overall impact to be marginal and will not derail India\u2019s long-term growth prospects.”<\/p>\n

The Indian government has been appreciated for its political stability. The agency mentioned that with the BJP having a majority in Parliament, the formulation of laws and schemes becomes easier. It has predicted a GDP growth of about 6.5%. Many government schemes and initiatives by Prime Minister Narendra Modi, like Jan Dhan, push to MSMEs, Ayushman Bharat, to name a few, have helped the economy.<\/p>\n

Additionally, the commerce ministry has released data showing that this quarter alone, trade has increased in many critical sectors like gems, mechanical goods, and auto parts. While there is concern about trade ties between the US and India, the ministry remains hopeful. The ministry stated, \u201cCommerce ministry\u2014negotiations with US are ongoing\u2026 talks are on\u2026 BTA talks are engaged\u2026 the US is an important trade partner for us just as we are for them.”<\/p>\n

These ratings are also important as India is poised to sign several bilateral trade agreements with other countries. A good rating will give India more power to negotiate.<\/p>\n

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Pallavi Ghosh<\/a><\/p>\n

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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News<\/a> business<\/a> ‘Exhili-Rating’ For India: How S&P Upgrade Strengthens Negotiating Power In Trade Talks<\/span><\/div>\n
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Last Updated:August 14, 2025, 18:23 IST The agency has raised India’s long-term unsolicited sovereign credit ratings to ‘BBB’\u00a0from ‘BBB-‘, and its short-term ratings to ‘A-2’\u00a0from ‘A-3’ This is seen as a significant acknowledgement of India’s growth story, especially given the cynicism within the Congress and Rahul Gandhi endorsing American President Donald Trump’s comment that India…<\/p>\n","protected":false},"author":1,"featured_media":1165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5217"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/1165"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}