S&P lifts India’s rating to BBB in first upgrade since 2007 | Reuters

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1. SS: Here’s a detailed summary of the article:

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   📌 S&P Upgrades India’s Credit Rating

   S&P Global Ratings upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’ on August 14, 2025.

   This is India’s first upgrade in 18 years (last in 2007).

   Upgrade is based on:

   Strong economic growth

   Improved monetary policy credibility (better inflation management)

   Progress in fiscal consolidation (efforts to reduce deficits).

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   📊 Key Economic Factors

   GDP Growth:

   Real GDP averaged 8.8% between FY22–FY24, the highest in Asia-Pacific.

   Projected to grow at 6.8% annually for the next three years.

   Debt & Fiscal Outlook:

   Debt-to-GDP ratio expected to decline to 78% by FY2029 (from 83% in FY2025).

   Despite wide deficits, strong growth is helping stabilize debt levels.

   External Strength:

   S&P raised India’s transfer and convertibility assessment to ‘A-’ from ‘BBB+’, showing improved external resilience.

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   🌍 Global Context

   US Tariffs:

   India faces up to 50% tariffs on exports to the US, after President Trump’s move linked to oil purchases from Russia.

   S&P judged the impact as manageable, given India’s domestic-demand-driven economy and relatively low trade dependence.

   Oil Imports:

   If India reduces Russian oil imports, the financial impact will be modest, as price differences between Russian and global crude are narrowing.

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   💹 Market Reaction

   Indian Rupee: Strengthened slightly to 87.58/$ from 87.66.

   10-Year Bond Yield: Fell 7 basis points to 6.38%, reflecting investor confidence.

   Analysts said the upgrade would boost foreign debt inflows and support bond markets.

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   🏛️ Government & Expert Responses

   Finance Ministry: Welcomed the upgrade, reiterated commitment to reforms, and restated India’s goal of becoming a developed economy by 2047.

   Economic Affairs Secretary Anuradha Thakur: Expected other rating agencies (Fitch, Moody’s) to follow suit.

   Market Experts: Called the move “music for debt markets,” improving investor sentiment after Trump’s criticism of India’s economy.

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   ⚠️ Risks & Future Outlook

   Risks:

   Political backtracking on fiscal reforms.

   Structural slowdown in growth that could hurt debt sustainability.

   Further Upgrade Possible If:

   Fiscal deficits narrow significantly.

   Net government debt growth falls below 6% of GDP sustainably.

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   🇮🇳 India’s Position in Global Ratings

   S&P: Now BBB (investment grade, stable outlook).

   Fitch: Still at BBB- (unchanged since 2006).

   Moody’s: At Baa3 (since 2020).

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   ✅ In summary:
   S&P’s upgrade is a major milestone for India, reflecting its strong growth momentum, effective monetary policy, and improving fiscal discipline. It strengthens investor confidence, could attract more debt inflows, and marks progress toward India’s long-term vision of becoming a developed economy by 2047. However, maintaining reforms and growth is crucial to sustain this momentum.

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