Supported by India's economic resilience and fiscal consolidation, S&P raises India's credit rating.

Jin10 data reported on August 14 that the credit rating agency S&P Global upgraded India's long-term sovereign credit rating from "BBB-" to "BBB" on Thursday, citing India's economic resilience and ongoing fiscal consolidation. The agency had previously revised India's rating outlook from stable to positive in May last year due to strong economic growth and improved quality of government spending. S&P stated in a release: "The upgrade of India's rating reflects its strong economic growth, while the strengthening of the monetary policy environment has anchored inflation expectations. Coupled with the government's commitment to fiscal consolidation and efforts to improve the quality of spending, we believe these factors have collectively driven the improvement in credit metrics." However, S&P indicated that if there is a political weakening of India's commitment to consolidate public finances, the rating may be downgraded; additionally, if economic growth slows significantly at a structural level, thereby undermining fiscal sustainability, there could also be downward pressure. Of course, the rating could also be further upgraded if the fiscal deficit narrows significantly, helping to bring the structural change of general government net debt to GDP below 6%, which would further enhance the rating.