Daijiworld Media Network – New Delhi

New Delhi, Aug 15: In a landmark move, global ratings agency S&P has upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’ with a stable outlook — the country’s first such upgrade in nearly two decades. The move comes despite global economic headwinds and counters US President Donald Trump’s recent jibe calling India “a dead economy.”

Lauding India as “among the best-performing economies,” S&P noted an average real GDP growth of 8.8% between FY22 and FY24 — the highest in the Asia-Pacific region — crediting robust fiscal discipline, improved quality of government spending, and resilience amid geopolitical and post-pandemic challenges.

S&P Global Ratings Director YeeFam Phua told NDTV Profit that India’s rating could rise further if fiscal deficits narrow significantly, reducing the net change in government debt below 6% of GDP on a structural basis. Finance Minister Nirmala Sitharaman has already targeted a fiscal deficit cut from 4.8% in FY25 to 4.4% in FY26.

On the impact of Trump’s recently imposed 50% tariff on Indian imports, Phua downplayed the risks, citing India’s low export-to-GDP ratio. He also said a shift away from Russian crude, if required, would have only a modest impact due to minimal price differences.

The government welcomed the upgrade, with the Finance Ministry stating it reflects India’s commitment to fiscal consolidation while maintaining strong infrastructure growth and an inclusive development agenda — key steps towards achieving the ‘Viksit Bharat 2047’ vision.