It follows a similar meeting with Moody’s earlier this month.
S&P has retained its sovereign rating for India at the lowest investment grade of ‘BBB-‘. But last year it upgraded its outlook on the country to positive from stable after a decade. Moody’s has maintained its rating for India at the same level– ‘Baa3’-but with a stable outlook. Fitch has also assigned a similar rating (BBB-) with a stable outlook. In the meeting with S&P on June 24, senior ministry officials led by chief economic advisor V Anantha Nageswaran, also underscored India’s easing inflation and improving debt-to-GDP ratio with a road map for further moderation to back up demand for the rating upgrade, ET has learnt.
India has remained the world’s fastest-growing major economy since 2021-22 and is forecast by the International Monetary Fund (IMF) to retain the status at least until 2026-27.
In fact, the IMF’s projected growth rates for India of 6.2% this fiscal and 6.3% for the next, are more-than-double the global averages. Uncertain US tariff policies have threatened global growth.
S&P this week raised its 2025-26 India growth projection to 6.5% from 6.3%. The RBI has projected 2025-26 retail inflation at 3.7%, lower than its medium-term target of 4%.The central government aims to trim its debt to 50%–with a margin of error of plus or minus 1%– of GDP by FY31 from an estimated 57.1% in FY25. The general government debt eased to 80.4% of GDP in 2025 from 88.4% in the pandemic year of 2020.Officials say India’s external sector performance remains strong as well. Its foreign exchange reserves remain adequate, providing an import cover of about 11 months. Services exports remain steady, and remittance inflows continue to serve as an important buffer for the country’s current account. The rupee, despite recent depreciation against the greenback, remains among the best performers in Asia.
Content Source: economictimes.indiatimes.com