S&P Global Upgrades India’s Outlook to Positive, Citing Long-Term Growth Prospects

GG News Bureau
New Delhi, 29th May. Global rating agency S&P Global has revised India’s outlook from stable to positive, citing the nation’s robust performance in long-term economic growth alongside political stability.

S&P Global highlighted that the positive outlook reflects their confidence in the continuation of policy stability, deepening economic reforms, and substantial infrastructure investments, which are expected to sustain long-term growth prospects for the country.

In a statement, the rating agency emphasized, “Continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects,” adding that cautious fiscal and monetary policies are anticipated to diminish the government’s elevated debt and interest burden while enhancing economic resilience.

Furthermore, S&P Global anticipates that these prudent fiscal and monetary policies will lead to a higher rating over the next 24 months. They also mentioned the possibility of raising ratings if there is a significant improvement in the central bank’s monetary policy effectiveness and credibility, resulting in durable inflation management.

However, the rating agency cautioned that the outlook could revert to ‘stable’ if there is a weakening of political commitment to sustainable public finances.

Alongside the revision of the outlook, S&P Global affirmed India’s ‘BBB-‘ long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign credit ratings. The agency expressed confidence in India’s sound economic fundamentals, expecting them to underpin the growth momentum over the next two to three years.