US-based S&P upgrades India’s rating, calls it ‘buoyant economy’, contrary to what Donald Trump said
Unlike Jebe, President Donald Trump’s ‘Dead Economy’ in India, the US -based S&P Global Ratings called it a ‘live economy’ and raised his long -term dominant credit rating. The details are here.
India Economy (representative image)
Contrary to what President Donald Trump said, India, a ‘dead economy’, the US-based S&P Global Ratings raised India’s long-term dominant credit rating to ‘BBB-‘ and ‘BBB. This is the first upgrade in 18 years. Previously, Fitch has rated India as ‘BBB-‘ since 2006, while Moody’s had a ‘Baa3’ note since June 2020. The rating agency showed strong economic growth, improved monetary policy reliability, and maintained its financial consolidation as the reasons for its decision. At the beginning of May 2024, S&P Global Ratings revised India’s stable positive outlook due to solid growth and better government expenditures.
S&P: Swimmer Economic Growth
“The raising of India reflects the floating economic growth against the ground of an advanced monetary policy environment that combines inflationary expectations,” S&P said in a statement. The rating agency also increased the transfer and conversion assessment as’ BBB+’A-‘. Reflects improved external flexibility. S&P expects India’s debt / GDP ratio to 78% in 2029 financial year.
Is India ‘dead economy’?
S&P raised India’s ratings after Donald Trump called it a dead economy with Russia. “I don’t care what India is doing with Russia. They can bring their dead economies together, for everything,” he criticized for buying Russian oil. The US President brought 25% additional tariffs to the acquisition of Russian oil and increased the cumulative tariff to 50%. On the other hand, India’s real GDP growth is 8.8%, the highest in Asia-Pacific between 2022 and 2024 financial years. It is expected to grow by 6.8% annually in the next three years.
According to S&P, if India shifts oil purchases from Russia and the cost is fully met by the government, the government will have a modest impact on the financing. Reacting to the upgrade of S&P, Indian Economic Affairs Secretary Anuradha Thakur said other rating agencies to raise and not note the factors following the case, he said.
