New Delhi [India], August 14 : India has received its first sovereign credit rating upgrade in 18 years, with S&P Global Ratings raising the country's long-term rating to 'BBB' from 'BBB-' and the short-term rating to 'A-2' from 'A-3', while keeping the outlook stable. The announcement, shared in a tweet by the Indian Ministry of Finance, marks a major milestone in the country's economic journey.
The Ministry of Finance said the rating improvement "reaffirms that under Prime Minister Narendra Modi's leadership, providing stability, India's economy is truly agile, active, and resilient." It noted that India has kept fiscal discipline a priority while pushing infrastructure growth and inclusive development. These factors, it added, have played a key role in achieving the upgrade.
This upgrade reflects India's robust economic growth, sustained fiscal consolidation, and policy stability. The stable outlook indicates that continued policy stability and high infrastructure investment will support India's long-term growth prospects.
The Finance Ministry stated that India will "continue its buoyant growth momentum and undertake steps for further reforms to attain the goal of Viksit Bharat by 2047," underscoring that the current direction of fiscal and economic policy will remain unchanged.
Union Minister of Commerce & Industry, Piyush Goyal also emphasized that India is prioritising fiscal consolidation, maintaining a strong infrastructure creation drive, and advancing an inclusive growth approach.
"This is also a testament that at the heart of our journey towards Viksit Bharat lies our economic resilience and our government's unwavering commitment to ensure a better life for every Indian," he stated in a tweet.
The last time S&P upgraded India's sovereign rating was in January 2007, when it was raised to 'BBB-'. This latest move, S&P said, reflects strong economic resilience, sustained fiscal consolidation, and policy stability.
S&P pointed out that India's high infrastructure investment, improved monetary conditions, and targeted spending have helped lower the weight of debt and interest burdens over time. It also revised India's transfer and convertibility assessment to 'A-' from 'BBB+', reflecting better external and monetary stability.
The stable outlook, according to S&P, signals confidence that India will maintain its growth path with continued reforms and policy continuity. "The government's efforts in fiscal consolidation, along with targeted spending, are helping reduce the weight of elevated debt and interest burdens over time," the rating agency said.
This is the second sovereign rating upgrade India has received in 2025. Earlier this year, DBRS Morningstar also raised India's rating to 'BBB'. Both upgrades are expected to boost investor confidence in the country's economic and policy framework.
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