The central government on Thursday welcomed S&P Global Ratings’ decision to upgrade the country’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook. The last such upgrade came in January 2007, making this the first in 18 years.
S&P cited economic resilience, sustained fiscal consolidation, and continued policy stability for the revision, which comes ahead of India’s 79th Independence Day. It also upgraded India’s transfer and convertibility assessment to A- from BBB+.
The finance ministry in a post on X wrote, “The Government of India welcomes the decision by S&P Global Ratings to upgrade India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook.”
The Government of India welcomes the decision by S&P Global Ratings to upgrade India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook. S&P last upgraded India in January 2007 to ‘BBB-’, hence, this…
— Ministry of Finance (@FinMinIndia) August 14, 2025
It highlighted that “S&P last upgraded India in January 2007 to ‘BBB-’; hence, this rating upgrade comes after an 18-year gap”, adding that this ratings upgrade “reaffirms that under Prime Minister Narendra Modi’s leadership, providing stability, India’s economy is truly agile, active, and resilient”.
Also Read: S&P Global upgrades India’s sovereign rating to ‘BBB’ on strong growth, fiscal reforms
The statement added that “India 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.”
“S&P’s is the second sovereign rating revision this year. DBRS had recently upgraded India to BBB status,” it added.
Commerce minister Piyush Goyal also took to X to reflect on the rating upgrade, calling it a testament to the Centre’s resilience and unwavering commitment to ensuring a better life for every Indian, echoing the vision of Viksit Bharat.
“Credit ratings agency S&P Global’s upgrade of India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’ and its short-term rating from ‘A-3’ to ‘A-2’, with a stable outlook, is a welcome decision,” Goyal said adding, “This rating upgrade, which has come after an 18-year gap, reaffirms that under PM Narendra Modi ji’s decisive leadership”
Credit ratings agency @SPGlobal‘s upgrade of India’s long term sovereign credit rating from ‘BBB-‘ to ‘BBB’ and its short-term rating to ‘A-2’ from ‘A-3’ with a stable outlook is a welcome decision.
This rating upgrade, which has come after an 18-year gap, has reaffirmed that… pic.twitter.com/ID6rVQMmQo
— Piyush Goyal (@PiyushGoyal) August 14, 2025
S&P outlook: Policy stability, infrastructure to drive growth
In its note, S&P said the stable outlook reflects its view that continued policy stability and high infrastructure investment will boost India’s long-term growth. Cautious fiscal and monetary policy, it added, would help moderate the government’s elevated debt and interest burden over the next 24 months.
Also Read: India’s GDP projected to increase 6.8% annually over next 3 years: S&P Global
The agency said the impact of US tariffs on India would likely be manageable, with strong economic fundamentals expected to support growth over the next two to three years. It credited improved monetary policy settings with anchoring inflationary expectations, alongside the government’s commitment to fiscal consolidation and better spending quality.
“India remains among the best-performing economies in the world,” S&P noted.
