S&P Global Ratings’ decision to raise India’s sovereign credit rating from ‘BBB-’ to ‘BBB’ is a significant endorsement of the country’s macroeconomic stability and fiscal discipline. The agency’s projections of 6.8% average GDP growth over the next three years, a gradual narrowing of fiscal deficits, and a decline in the debt-to-GDP ratio to 78% by 2029 signal confidence in India’s economic direction. Effective inflation control and relatively low trade dependence have also been cited as factors that make India more resilient to external shocks.An sovereign rating upgrade can help reduce sovereign and corporate borrowing costs, improve investor perception, and strengthen India’s case in global capital markets. But the value of such recognition lies in how it is used. This moment offers policymakers a rare opportunity to address structural weaknesses that could otherwise limit the benefits of the rating improvement.
.png)
