New Delhi, Aug 14 (NationPress) Highlighting India's economic resilience and ongoing fiscal consolidation, the renowned global credit ratings agency S&P Global announced on Thursday an upgrade of India's long-term unsolicited sovereign credit rating to "BBB", up from the previous "BBB-", just in time for the 79th Independence Day celebrations.

S&P Global emphasized that the stable outlook is a reflection of consistent policy stability and significant investments in infrastructure, both of which are expected to enhance India's long-term growth trajectory.

According to S&P Global, "This, combined with prudent fiscal and monetary policies that help to moderate the government's high levels of debt and interest obligations, will support the rating over the next 24 months."

The agency also upgraded India's short-term rating from A-3 to A-2, while the transfer and convertibility assessment has been adjusted from BBB+ to A-.

The impact of US tariffs on India is anticipated to be manageable, bolstered by strong economic fundamentals that should sustain the country's growth momentum through the next few years, as noted in the report.

Back in May 2024, S&P had shifted its outlook on the Indian economy from stable to positive, indicating a potential upgrade of the sovereign rating should India's fiscal deficit see significant reduction.

The report highlights India's commitment to fiscal consolidation, showcasing the government’s resolve to maintain sustainable public finances while pursuing a robust infrastructure agenda.

The stable outlook reflects S&P's belief that ongoing policy stability and substantial infrastructure investment will bolster India's long-term growth potential. Additionally, cautious fiscal and monetary policies will alleviate the government's significant debt and interest burdens, ensuring the rating remains intact over the next two years.

The note further states, "Monetary policy settings have become increasingly favorable for managing inflationary expectations."

The upgrade serves as a testament to India's dynamic economic growth, supported by an improved monetary policy framework that stabilizes inflation expectations.

The report concludes by stating, "With the government's dedication to fiscal consolidation and enhanced spending quality, these elements have come together to positively impact credit metrics. India continues to rank among the top-performing economies globally."