Union Finance Minister Nirmala Sitharaman lauded the Standard and Poor's outlook upgrade of the Indian sovereign ratings on Wednesday.
S&P Global revised India's sovereign outlook from 'stable' to 'positive' on Wednesday, citing confidence in the country's policy stability, economic reforms, and infrastructure investments. The agency maintained its 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local currency sovereign credit ratings.
"This reflects India's solid growth performance and a promising economic outlook for the coming years," Sitharaman wrote on Wednesday in a post on social media platform X, formerly known Twitter.
"It has been possible due to the series of macroeconomic reforms undertaken since 2014, along with substantial outlay for capex, fiscal discipline, and decisive & visionary leadership. As envisioned by Hon'ble PM Shri Narenda Modi," Sitharaman said.
The move comes amid India batting for a sovereign rating upgrade, for which the Finance Ministry's Economic Affairs Department has held conversations with other rating agencies like Moody's.
S&P noted that their outlook revision hinges on the economic momentum propelled by policy stability, deepening economic reforms, and high infrastructure investment, which they expect will sustain long-term growth prospects.
India's fiscal deficit, coupled with its debt position, has long been cited as a concern by international rating agencies. S&P's recent report notes these factors along with cautious fiscal and monetary policy would balance concerns on the debt front.
S&P also hinted at a rating revision over the next 24 months.
The Bharatiya Janata Party announced ahead of the Lok Sabha elections that it intends to make India the third-largest economy by 2047, if they win a third term in office.
The credit rating agency believes that regardless of the election outcome, a broad continuity in economic reforms and fiscal policies would persist.
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