India's Credit Rating Upgraded After Two Decades: S&P Boosts Confidence

• S&P upgraded India's credit rating from BBB- to BBB, the first such improvement from a major agency in nearly 20 years.
• Morningstar DBRS and Japan's R&I also improved India's rating in 2025, signaling growing international confidence.
• Improved credit rating enhances foreign investor confidence, lowers borrowing costs for government and companies, and accelerates investment flows.
• India demonstrated strong fiscal discipline, limiting the fiscal deficit to 4.8% in FY25 and targeting 4.4% for FY26.
• Despite the positive upgrade, challenges like current account deficit, reliance on foreign capital, and rupee volatility still need addressing.

Why It Matters: India's credit rating upgrade by S&P after two decades signals strong international confidence and economic stability.