SP Global upgrades India's sovereign rating to BBB with stable outlook

In a decisive shift for India’s credit standing, SP Global Ratings upgraded the country’s long-term sovereign credit rating to BBB from the prior level and lifted its short-term rating to A2 from A3, while maintaining a stable outlook. The transfer and convertibility assessment was also raised to A from BBB. The upgrade, the first of its kind in about 18–19 years, comes as India has built a reputation for resilient growth, disciplined public finances and a continued push on infrastructure investment.

The rating institution attributed the move to robust economic expansion paired with sustained fiscal consolidation and a monetary policy framework that anchors inflationary expectations. It noted that growth has been buoyant, with domestic demand driving much of the expansion, thereby providing a cushion against global shocks. In the near term, the agency projects continued momentum, estimating GDP growth near 6.8 percent annually over the next three years. The rating also reflects expectations that fiscal deficits will gradually narrow, helping to stabilize the general government debt ratio over time.

Policy stability and a strong infrastructure program were highlighted as key...