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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