Kathmandu. The international rating agency, S&P Global Ratings, has upgraded India’s sovereign rating to ‘Triple B’.
The upgrade in ratings is based on encouraging economic growth against the backdrop of a monetary policy environment that strengthens inflation expectations. S&P is the first global rating agency to upgrade India’s sovereign rating from a weak investment valuation of ‘Triple B minus’. S&P has improved India’s sovereign rating after 18 years.
“India continues to prioritize fiscal prosperity by demonstrating the government’s political commitment to providing sustainable public finance while maintaining its strong infrastructure drive,” S&P said in a statement on Thursday. ”
S&P Global Ratings has upgraded its long-term unwanted sovereign credit rating in India from ‘Triple B minus’ to ‘Triple B’ and its short-term rating from ‘A3’ to ‘A2’. The outlook for long-term ratings is stable.
“India is one of the best performing economies in the world, and expects economic growth to continue in the medium term,” S&P Global said in a statement.
“We expect India’s real GDP growth to grow at 6.5 per cent this year, which is compatible with friends in emerging markets amid the global recession,” the global valuation agency said in a press release.
“We believe that the impact of US tariffs on the Indian economy will be manageable. India is relatively less dependent on trade and about 60 per cent of its economic growth comes from domestic consumption. “
Even though the US is India’s largest trading partner, even the proposed 50 per cent tariff rate proposed by S&P will not have much impact on India’s economic growth.
