S&P upgrades outlook on India's sovereign rating to 'positive' based on country's robust economic expansion
India TV NewsS&P Global Ratings has upgraded India’s sovereign rating outlook to 'positive' from 'stable', while maintaining the rating at 'BBB-'. The rating agency's positive outlook on India is predicated on its robust economic growth, pronounced improvement in the quality of government spending, and political commitment to fiscal consolidation, it said. India's GDP growth to aid debt reduction S&P expects India's economy to expand at close to 7% annually over the next three years which it said should have a moderating effect on the ratio of government debt to GDP despite high fiscal deficits. Its favourable GDP growth to interest rate differential is keeping government borrowing sustainable, S&P said, adding that it expects the country's debt to GDP ratio to reduce to 81% by fiscal 2028 from 85% currently. The agency may raise its ratings on India if fiscal deficits narrow meaningfully to bring down the general government debt to below 7% of GDP on a structural basis or if it observes a sustained and substantial improvement in the central bank's monetary policy effectiveness and credibility with inflation staying low on a durable basis, it said.