New Delhi: Global credit ratings agency S&P Global on Thursday upgraded India’s long-term unsolicited sovereign credit rating to “BBB” from the earlier “BBB-“, ahead of the 79th Independence Day, .
S&P’s recent upgrading can be seen as a major counter to US President Donald Trump’s recent jibe that India is a ‘dead economy’.
The short-term rating on India has also been revised to A-2 from A-3 earlier, and the transfer and convertibility assessment has been revised to A- from BBB+.
In a note, S&P Global said the stable outlook reflects continued policy stability and high infrastructure investment, which are set to boost India’s long-term growth.
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Finance Ministry Responds To S&P Global’s India Rating
Meanwhile, the Finance Ministry has tweeted that “Government of India welcomes the decision by S&P Global Ratings to upgrade India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook. S&P last upgraded India in January 2007 to ‘BBB-’, hence, this rating upgrade comes after an 18-year gap.”
Finance Ministry further said that the ratings upgrade reaffirms that under Prime Minister Narendra Modi’s leadership, providing stability, India’s economy is truly agile, active, and resilient.
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“India has prioritised fiscal consolidation, while maintaining its strong infrastructure creation drive and inclusive growth approach, that has led to the upgrade. India will continue its buoyant growth momentum and undertake steps for further reforms to attain the goal of Viksit Bharat by 2047.S&P’s is the second sovereign rating revision this year. DBRS had recently upgraded India to BBB status,” said the Finance Ministry.
Donald Trump ‘Dead Economy’ Jibe On India
In the Truth Social post attacking former Russian President Dmitry Medvedev, US President Donald Trump brought in India out of the blue: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care”.
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