The central government on Thursday welcomed S&P Global Ratings’ decision to upgrade the country’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. The last such upgrade came in January 2007, making this the first in 18 years.

S&P cited economic resilience, sustained fiscal consolidation, and continued policy stability for the revision, which comes ahead of India’s 79th Independence Day. It also upgraded India’s transfer and convertibility assessment to A- from BBB+.

The finance ministry in a post on X wrote, “The 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.”

It highlighted that “S&P last upgraded India in January 2007 to ‘BBB-’, hence, this rating upgrade comes after an 18-year gap”, adding that this ratings upgrade “reaffirms that under Prime Minister Narendra Modi’s leadership, providing stability, India’s economy is truly agile, active, and resilient”.

The statement added that “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,” it added.