India's Fiscal Discipline, Infra Push And Inclusive Growth Led To S&P Rating Upgrade: Finance Ministry

The government welcomes global credit ratings agency S&P Global's India rating upgrade to 'BBB', said the Finance Ministry in a statement on Thursday.

The upgrade, which comes 18 years after the last by the agency, places a short-term rating 'A-2', and outlook at 'stable.' "The S&P upgrade reaffirms economic stability under PM Modi's leadership," said the Finance Ministry.

India’s fiscal discipline, infra push and inclusive growth led to ratings upgrade, said the statement, adding that the country is set to maintain growth momentum and reforms in line for Viksit Bharat 2047.

This is the first time India has received a sovereign rating upgrade since 2017. BBB- is the lowest investment-grade rating by a credit rating agency. An upgrade from that point results in lowering bond yields and better borrowing costs for the government.

"The stable outlook reflects our view that continued policy stability and high infrastructure investment will support India's long-term growth prospects," S&P had said in its statement.