On 14 August 2025, S&P Global Ratings upgraded India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’, the first upgrade in 18 years, citing strong economic growth, better monetary policy credibility, and sustained fiscal consolidation.
- India’s last upgrade by S&P was in 2007.
- India’s real GDP growth averaged 8.8% (FY 2022–24), the highest in Asia-Pacific, and is projected at 6.8% annually over the next three years.
- India’s debt-to-GDP ratio expected to decline from 83% (FY 2025) to 78% (FY 2029).
- Other agencies’ ratings: Fitch: BBB- (since 2006), Moody’s: Baa3 (since 2020).
- The upgrade came despite U.S. tariffs on Indian exports (50%), citing oil imports from Russia.
