S&P Global upgrades India's outlook to positive from stable amid robust economic growth

NEW DELHI: Global rating agency S&P Global on Wednesday revised India's outlook from stable to positive on Wednesday, as the country continues to excel in long-term economic growth amid political stability.

S&P Global said that the “positive outlook reflects our view that continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects”.

“That, along with cautious fiscal and monetary policy that diminishes the government's elevated debt and interest burden while bolstering economic resilience, could lead to a higher rating over the next 24 months," the rating agency said in a statement.

S&P Global expects cautious fiscal and monetary policies to reduce the government's debt and interest burden, thereby strengthening economic resilience.

This could result in a higher rating within the next 24 months.

"We may also raise the ratings if there is a sustained and substantial improvement in the central bank's monetary policy effectiveness and credibility, such that inflation is managed at a durably lower rate over time," S&P Global noted.

However, S&P Global said it could revert the outlook to 'stable' if political commitment to sustainable public finances weakens.

The ratings agency also affirmed 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local currency sovereign credit ratings.

“We expect sound economic fundamentals to underpin the growth momentum over the next two to three years,” the ratings firm said.