{"id":5268,"date":"2025-08-14T18:36:24","date_gmt":"2025-08-14T18:36:24","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/14\/s-finmin-reacts-economy-news\/"},"modified":"2025-08-14T18:36:24","modified_gmt":"2025-08-14T18:36:24","slug":"s-finmin-reacts-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/14\/s-finmin-reacts-economy-news\/","title":{"rendered":"S&P Upgrades India’s Sovereign Rating To ‘BBB’ With Stable Outlook; FinMin Reacts | Economy News"},"content":{"rendered":"


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A day ahead of India’s 79th Independence Day, the country’s short-term rating has also been revised to ‘A-2’ from ‘A-3’ by S&P Global.<\/h2>\n
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S&P Global says the stable outlook reflects its view that “continued policy stability and high infrastructure investment will support India’s long-term growth prospects”.<\/p>\n<\/figure>\n

Ratings agency S&P Global has upgraded India\u2019s sovereign rating to \u2018BBB\u2019 from its earlier \u2018BBB-\u2018 on Thursday, August 14, while maintaining the outlook as \u2018stable\u2019. The move comes a day ahead of India\u2019s 79th Independence Day.<\/p>\n

The short-term rating has also been revised to \u2018A-2\u2019 from \u2018A-3\u2019, and the transfer and convertibility assessment has been upgraded to \u2018A-\u2018 from \u2018BBB+\u2019.<\/p>\n

\u201cIndia is prioritising fiscal consolidation, demonstrating the government\u2019s political commitment to deliver sustainable public finances, while maintaining its strong infrastructure drive,” S&P said in a statement.<\/p>\n

S&P Global said the stable outlook reflects its view that \u201ccontinued 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

In May 2024, the agency had shifted its outlook on the Indian economy to positive from stable, noting it could raise the sovereign rating if the fiscal deficit narrowed sufficiently for the net change in general government debt to fall below 7% of GDP on a structural basis.<\/p>\n

\u2018Govt Of India Welcomes S&P\u2019s Upgrade\u2019<\/strong><\/p>\n

Reacting to this, the finance ministry in a statement said, \u201cThe Government of India welcomes the decision by S&P Global Ratings to upgrade India\u2019s long-term sovereign credit rating to \u2018BBB\u2019 from \u2018BBB-\u2019 and its short-term rating to \u2018A-2\u2019 from \u2018A-3\u2019, with a Stable Outlook. S&P last upgraded India in January 2007 to \u2018BBB-\u2019, hence, this rating upgrade comes after an 18-year gap.”<\/p>\n

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The Government of India welcomes the decision by S&P Global Ratings to upgrade India\u2019s long-term sovereign credit rating to \u2018BBB\u2019 from \u2018BBB-\u2019 and its short-term rating to \u2018A-2\u2019 from \u2018A-3\u2019, with a Stable Outlook. S&P last upgraded India in January 2007 to \u2018BBB-\u2019, hence, this\u2026\u2014 Ministry of Finance (@FinMinIndia) August 14, 2025<\/a><\/p>\n<\/blockquote>\n<\/div>\n

The ratings upgrade reaffirms that under Prime Minister Narendra Modi\u2019s leadership, providing stability, India\u2019s economy is truly agile, active, and resilient, it added.<\/p>\n

\u201cIndia has prioritised fiscal consolidation, while maintaining its strong infrastructure creation drive and inclusive growth approach, that has led to the upgrade. India will continue its buoyant growth momentum and undertake steps for further reforms to attain the goal of Viksit Bharat by 2047,” the ministry stated.<\/p>\n

S&P\u2019s is the second sovereign rating revision this year. DBRS had recently upgraded India to BBB status, it said.<\/p>\n

According to S&P Global, India is prioritising fiscal consolidation, demonstrating \u201cthe government\u2019s political commitment to deliver sustainable public finances, while maintaining its strong infrastructure drive”.<\/p>\n

The agency also noted that the country\u2019s robust economic expansion is improving credit metrics and that it expects sound fundamentals to sustain growth momentum over the next two to three years.<\/p>\n

\u201cIn addition, monetary policy settings have become increasingly conducive to managing inflationary expectations,” the note stated.<\/p>\n

S&P Global added it could consider another upgrade if fiscal deficits narrow to the extent that the net change in general government debt falls below 6% of GDP on a structural basis.<\/p>\n

S&P Global\u2019s \u2018BBB\u2019 rating is an investment-grade rating that indicates a country\u2019s adequate capacity to meet its financial commitments, subject to adverse economic conditions.<\/p>\n

\u201cWe believe the effect of US tariffs on the Indian economy will be manageable. India is relatively less reliant on trade and about 60 per cent of its economic growth stems from domestic consumption,” S&P said.<\/p>\n

Though the US is India\u2019s largest trading partner, S&P does not expect the 50 per cent tariffs (if imposed) to pose a material drag on growth, it added.<\/p>\n

\u2018Economy is dead?\u2019<\/strong><\/p>\n

BJP national spokesperson Shehzad Jai Hind (Modi Ka Parivar) said in a post on X, \u201cEconomy is dead? BIG: S&P upgrades India\u2019s sovereign rating to BBB (stable outlook). Global markets are acknowledging India\u2019s growth momentum, fiscal consolidation, and infrastructure push. So much for the \u2018dead economy\u2019 chants from Rahul Gandhi.”<\/p>\n

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Economy is dead ?BIG: S&P upgrades India\u2019s sovereign rating to BBB (stable outlook).<\/p>\n

Global markets are acknowledging India\u2019s growth momentum, fiscal consolidation, and infrastructure push. So much for the \u201cdead economy” chants from Rahul Gandhi.<\/p>\n

S&P noted:<\/p>\n

\u2022 \u201cIndia is\u2026<\/p>\n

\u2014 Shehzad Jai Hind (Modi Ka Parivar) (@Shehzad_Ind) August 14, 2025<\/a><\/p>\n<\/blockquote>\n<\/div>\n

According to the post, S&P noted \u2018India is prioritising fiscal consolidation\u2026 while maintaining its strong infrastructure drive\u2019. Robust economic expansion is having a constructive effect\u2026 monetary policy settings have become increasingly conducive to managing inflationary expectations. We therefore raised our sovereign credit ratings on India to \u2018BBB\u2019 from \u2018BBB-\u2018.<\/p>\n

\u201cReforms deliver,” he added.<\/p>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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