S&P; upgrades India's sovereign rating to 'BBB' on economic resilience, inflation control measures

New Delhi, Aug 14 (PTI) S&P Global Ratings on Thursday upgraded India's sovereign rating by a notch to 'BBB', citing buoyant economic growth against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations.

S&P is the first global rating agency to upgrade India's sovereign rating from the lowest investment grade of 'BBB-'.

"India is prioritising fiscal consolidation, demonstrating the government's political commitment to deliver sustainable public finances, while maintaining its strong infrastructure drive," S&P said in a statement.

S&P Global Ratings raised its long-term unsolicited sovereign credit ratings on India to 'BBB' from 'BBB-', and its short-term ratings to 'A-2' from 'A-3'. The outlook on the long-term rating is stable, the US-based agency said in a statement.

"We believe the effect of US tariffs on the Indian economy will be manageable. India is relatively less reliant on trade and about 60 per cent of its economic growth stems from domestic consumption," S&P said.

Though the US is India's largest trading partner, S&P does not expect the 50 per cent tariffs (if imposed) to pose a material drag on growth, it added. PTI JD CS JD MR