S & p global upgrades credit ratings: After upgrading India’s ratings, the global rating agency S&P has now increased the rating of 10 big financial institutions including SBI, HDFC Bank and Tata Capital. This step was taken by the US agency on Friday. A day earlier, on Thursday, India’s Sovereign Credit Rating S&P increased ‘BBB’ after more than 18 years.

S&P Global Ratings said that the financial institutions of India will continue to take advantage of the strong economic growth of the country. The agency believes that these institutions will benefit from focusing on the domestic sector and structural reforms in the system.

Increased ratings of seven banks

The Global Rating Agency has upgraded the ratings of seven Indian banks – Indian banks – Indian State Bank, ICICI Bank, HDFC Bank, Axis Bank Limited, Kotak Mahindra Bank, Union Bank of India and Indian Bank -. Apart from this, the long -term credit rating of three financial companies – Bajaj Finance, Tata Capital and L&T Finance – has also been increased.

S&P says that India’s banks will maintain their property quality, profitability and capitalization in the next 12 to 24 months, even if there is pressure in some sectors. The agency also stated that the credit risk in the banking system has decreased.

What will be the benefit of this?

The rating of many financial institutions is limited to India’s government credit rating, as the government has a direct and indirect impact on the banking system. The agency said that the Insolvency and Recordment Disability Code (IBC) has made significant improvements in the rule of payment culture and law in India.

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S & p upgrades india ratings: India’s Sovereign Credit Rating was upgraded by S&P Global Ratings on Thursday, ‘BBB’. The rating agency has increased India’s rating after 19 years, citing strong economic growth, political commitment to fiscal strength and better monetary policy measures to control inflation.

Relief for India

The rating agency said that India is one of the best performing economies in the world. The quality of government spending has improved in the last 5-6 years. S&P said that the American tariff will have a very limited impact on the Indian economy. According to S&P, India is relatively less dependent on trade and about 60 percent of its economic growth comes from domestic consumption.

Significantly, the US agency has improved India’s Sovereign Credit rating at a time when earlier US President Donald Trump called the Indian economy as “dead economy”. A 25 percent base tariff over India on behalf of President Trump and then have been applied as an additional 25 percent penalty due to buying oil from Russia. That is, a 50 percent tariff on Indian goods will be effective from August 27, which is the highest fee ever.

What do you mean to improve credit?

Improvement in credit will reduce the cost of debt for Indian companies in international markets. S&P gave India the lowest investment level rating ‘BBB-‘ in January 2007. This is the first improvement in credit by a global rating agency, in which India has been given a rank above the lowest investment level. ‘BBB’ is an investment -level rating and it explains the country’s better ability to easily repay its debt obligations.

S&P had changed India’s credit rating scenario from ‘stable’ to ‘positive’ in May last year, as well as indicated that the rating could improve in the next 24 months. S&P improved India’s rating, saying, “Improvement in India’s credibility, the better monetary policy that curbs inflation reflects strong economic growth with the environment.”

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S & P Global Rating on India GDP: Despite a long -running conversation on India’s trade deal with America, no positive results could come out. On the other hand, US President Donald Trump not only imposed a 25 percent base tariff on India, but also announced an additional 25 percent tariff as a penalty due to buying cheap oil from Russia. Although this additional tariff has not been implemented yet, it has to be effective from August 27.

Report on India’s economic strength

Meanwhile, a report has come, which reflects India’s growing economic strength, and the US President may also be surprised to see. Yiforn Fukha, director of S&P Global Rating, says that India’s tariff will not affect India’s economic growth, because India is not a trade-oriented economy.

He said on Wednesday that the scenario of India’s ‘Sovereign rating’ will remain positive. The rating agency S&P had increased India’s sovereign rating ‘BBB-‘ to ‘positive’ in May last year, citing strong economic growth.

Why will there not be an effect?

When asked by the director of S&P Global Ratings, whether the tariff imposed will negatively impact India’s positive scenario, he said that he would not think it would have any effect on India’s economic growth, because India is not a very much trade-oriented economy.

He further said that if we look at India’s dependence on America in the context of exports compared to GDP (GDP), then it is about 2 percent. S&P estimates that in the current financial year 2025-26, India’s GDP growth rate will be 6.5 percent, which is equivalent to the previous financial year 2024-25.

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India-asa news: US President Donald Trump has announced a tariff on India. On April 2, how much this tariff will be will be, everyone’s eyes are on from Dalal Street to Mint Street, from boardroom to policy corridors. Trump has said many times before that India imposes the most tariffs compared to other countries, so America will also impose tariffs on India in the same proportion.

According to data from the World Trade Organization (WTO), India’s average tariff in 2023-24 was 12 percent, while the US had only 2.2 percent. In an interview to Breetbart News on March 19, Trump said, “I believe that India is going to cut its tariff soon, but from April 2 we will put as much tariff on them as they put on us.” Now the question arises that how much will this decision affect India? Let us know what effect it will have:

Learn what S&P Global’s report says

In the new report, S&P Global has said that India’s strong economy and low dependence on America can save it from the effects of Trump tariff. According to the report, the share of exports in India’s GDP is only 10 percent, which will limit the direct impact of tariffs.

Trump again reiterated the policy of ‘reciperook tariff’

However, it can definitely be seen on some sectors. The report of S&P states that India’s less business connectivity with the US reduces the risk risk, but can affect steel and chemical sectors. The rating agency also said that most of the Indian companies obtained by rating are capable of facing temporarily income loss.

Fittch: India protected from some extent tariff effect

Fittch has predicted India’s GDP growth rate of 6.5 percent in FY 2025-26. However, the agency has warned that if the American trade policies become more strict than expected, it can become a big risk for India’s economic growth.

According to FITCH, India’s business confidence remains strong, and according to the bank loan survey, the loan to the private sector is increasing by double digits. The agency believes that India’s economy is somewhat safe from the impact of American tariff policies due to low depending on external demand.

Moody’s: Steel, Auto and Chemical Sector most affected

According to the Moody’s Rating reports, the automotive, steel, chemicals and business areas of South and South-East Asia can become the biggest victims of the American tariffs. This may reduce the demand for these industries and increase the cost.

However, Moody’s said that mining, oil and gas, shipping, investment holding companies and agricultural and protein sectors are the most capable of tolerating this effect.

Negative impact on Indian growth rate

According to Goldman Sachs, the tariff of Trump may get a shock of 10 to 60 basis points (BPS). The report said that India’s gross export to the US is only 2% of GDP, which is the lowest in the emerging markets. However, if the US implements global tariffs to all countries, then the impact of India’s domestic economic activity on the final demand of America can be doubled. This can affect the Indian GDP growth rate from 0.1% to 0.6%.

America can impose tariffs on India in three ways:

• Applying tariffs based on average tariff difference on all products imported from India.
• Profits equal to India’s tariff on every product.
• Applying non-tariff measures, such as administrative obstacles, import license conditions, etc.

Goldman Sachs believes that any of these ways can affect India’s economy, but India’s trading relations with America being comparatively limited may be less than in other countries.