India’s Credit Rating Upgraded to ‘BBB’ After Trump Calls India ‘Dead Economy’, Govt Replies
In a significant development, India’s long-term sovereign credit rating has been upgraded from ‘BBB-‘ to ‘BBB’ by US-based S&P Global, just days after US President Donald Trump described India as having a “dead economy”. The credit rating agency, in its latest report, cited India’s economic resilience and sustained fiscal consolidation as the reasons behind the upgrade. The news comes as a welcome respite for the Indian government, which has been working to revamp the country’s economy and attract foreign investment.
The upgrade is a testament to India’s strong economic fundamentals, which have been driving growth and stability in the country. S&P Global noted that India’s economy has demonstrated remarkable resilience in the face of global challenges, including the COVID-19 pandemic and trade tensions. The agency also praised India’s efforts to consolidate its fiscal position, which has helped to reduce its debt burden and improve its creditworthiness.
The upgrade is a significant milestone for India, as it reflects the country’s growing reputation as a stable and attractive destination for foreign investment. The rating upgrade is expected to have a positive impact on India’s borrowing costs, making it cheaper for the government to borrow funds from international markets. This, in turn, is likely to have a positive impact on the economy, as the government can use these funds to invest in infrastructure and other key sectors.
The news of the rating upgrade comes just days after US President Donald Trump made a controversial statement about India’s economy, describing it as “dead”. Trump’s statement was widely criticized by Indian officials and economists, who pointed out that India’s economy is one of the fastest-growing major economies in the world. The Indian government has been working to boost economic growth and create jobs, and the upgrade is a recognition of its efforts.
India’s finance minister, Nirmala Sitharaman, welcomed the rating upgrade, saying that it was a testament to the country’s strong economic fundamentals. “India will continue its buoyant growth momentum,” she said in a statement. “We will continue to work towards creating a more business-friendly environment and promoting economic growth and development.”
The upgrade is also seen as a vindication of the Indian government’s economic policies, which have been focused on promoting growth and stability. The government has been working to reduce its fiscal deficit and improve its debt-to-GDP ratio, and the upgrade is a recognition of its efforts.
The news of the rating upgrade has been welcomed by Indian businesses and investors, who are hoping that it will attract more foreign investment to the country. The upgrade is also seen as a positive sign for the country’s bond markets, which are expected to benefit from the improved credit rating.
In its report, S&P Global noted that the effects of Trump’s tariffs on India will be “manageable”, and that the country’s economic growth will continue to be driven by domestic demand. The agency also praised India’s efforts to promote foreign investment, including its efforts to ease regulatory hurdles and improve the business environment.
The news of the rating upgrade comes at a time when India is facing several economic challenges, including a slowdown in growth and a rise in inflation. The government has been working to address these challenges, and the upgrade is seen as a positive sign that its efforts are paying off.
In conclusion, India’s credit rating upgrade to ‘BBB’ is a significant development that reflects the country’s strong economic fundamentals and its growing reputation as a stable and attractive destination for foreign investment. The upgrade is a testament to the Indian government’s efforts to promote economic growth and stability, and is expected to have a positive impact on the country’s borrowing costs and economic growth.
News Source:
https://x.com/ANI/status/1955927102999658854
