S&P Global has raised India’s sovereign credit rating to ‘BBB’ from ‘BBB-’

Current Context: On August 14, 2025, S&P Global Ratings upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’, marking the first upgrade in 18 years and a return to the rating level last held in 1990.

Key Highlights

• Outlook: Stable; short-term rating also raised to ‘A-2’ from ‘A-3’

Reasons for Upgrade:

• Robust economic growth (projected 6.8% annually for next 3 years)
• Sustained fiscal consolidation and improved spending quality
• Strong infrastructure investment and policy stability

Impact:

• Boosts investor confidence and lowers borrowing costs
• Enhances India’s global financial credibility

Government Response:

• Union Minister Piyush Goyal called it a “testament to economic resilience”
• Finance Ministry linked it to the goal of Viksit Bharat by 2047.

Question:

Q.1 On August 14, 2025, which global credit rating agency, recognized by the Securities and Exchange Board of India (SEBI), upgraded India’s long-term sovereign credit rating to ‘BBB’?
a) Standard & Poor’s (S&P) Global Ratings
b) Fitch Ratings
c) Moody’s Investors Service
d) Credit Analysis and Research (CARE) Ratings

Answer: a) Standard & Poor’s Global Ratings, one of the international rating agencies recognized by SEBI, upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’.