S&P Global Upgrades India’s Credit Rating and Forecasts Continued Growth Despite Election Amid Pandemic Recovery

S&P Global Upgrades India’s Outlook to Positive as Economy Strengthens (BATS:INDA)

On Wednesday, S&P Global upgraded India’s sovereign credit ratings from ‘BBB-/A-3’ to ‘BBB+’ with a positive outlook, citing the country’s ongoing economic reforms and expansion as indicators of a steady growth trajectory. With India currently in the midst of general elections, S&P noted that the country has made a remarkable recovery from the impacts of the COVID-19 pandemic.

The ratings agency highlighted the positive outlook as a reflection of their belief that India’s continued policy stability, deepening economic reforms, and high infrastructure investment will contribute to long-term growth prospects. S&P also praised India’s cautious fiscal and monetary policies, which have helped reduce the government’s debt and interest burden while enhancing economic resilience.

S&P’s estimates show that India’s real GDP growth has averaged 8.1% annually over the past three years, making it the highest in the Asia-Pacific region. They predict that this growth momentum will continue in the medium term, with GDP expanding by close to 7.0% annually over the next three years.

India is projected to be one of the fastest-growing economies in Asia in 2021 due to its successful management of COVID-19 outbreak and its ability to implement significant economic reforms at a rapid pace. The Reserve Bank of India (RBI) expects India’s economy to grow by 7% during its current financial year starting in April, which aligns with S&P’s optimism about India’s future growth prospects.

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