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Global rating agency S&P Global has increased India’s long-term credit rating from BBB-to BBB. At the same time, the short-term rating was also increased from A-3 to A-2. At the same time, Outlook has been kept stable with Indian economy.
S&P says that India’s economy is getting stronger. The government is constantly trying to control its expenses, which is called fiscal consolidation. Apart from this, India’s economic growth is also happening rapidly, which is a major reason for this upgrade.
- BBB- What is: The lowest “investment grade” rating. This means that the ability to repay the debt is fine, but there may be a slight risk in economic problems. Investment safe, limited trust.
- What is bbb: These BBB-one step above. The ability to repay the debt good, reduce the risk, and the trust of investors is slightly higher.
India fast growing economy According to S&P, India gained an average of 8.8% GDP growth between 2022 and 2024, which is the highest in Asia-Pacific. At the same time, average 6.8% growth is expected in the next three years.
What will be the benefit of India to increase rating? This means that investors around the world will increase trust in India, because due to better ratings, India can be easy and cheaper to take loans. Also, it shows that the economy of India is going in the right direction. S&P also said that he will gather more information now, and can consider to improve the rating in future.
S & P is a global rating agency S&P i.e. Standard and Puers is a global rating agency that assesses economic health of countries, companies and institutions around the world. In easy language, it is an institution that gives a “report card” to a country or company, so that it is known how strong or weak their economic condition is.
World Bank preserved GDP growth at 6.3% In June, the World Bank retained India’s GDP growth at 6.3% for FY 2025-26. Last year it was 6.5%. In April, the World Bank reduced India’s development estimate for 2025-26 from 6.7% of January to 6.3%.
The World Bank report has estimated India’s growth rate of 2026-27 to be 6.5%. The World Bank also said that India will remain the fastest growing major global economy.
