Friday 29/Aug/2025 – 10:40 AM
The Global Credit Classification Agency Standard & Poor’s has raised the long-term sovereign rating of India from “BBB-” to “BBB” with a straight view, in a move that reflects the growing international confidence in the durability of the Indian economy and the wise management of financial and economic policies.
This is the first promotion of its kind for India since January 2007, that is, after a 18 -year gap. The agency also raised the “conversion and transformation” of BBB +to -A, which reflects the improvement of India’s financial flexibility and its ability to face external shocks.
Strong economic growth and declining inflation
This development comes at a time when the Indian economy shows a remarkable performance; The GDP recorded 6.5% during the fiscal year 2024-2025, which is the highest among the major economies in the world, and the annual inflation rate decreased to 2.82% in May 2025, at its lowest level since February 2019, which reflects the effectiveness of monetary policy in containing prices.
A leap in exports and foreign exchange reserves
While India’s position in global supply chains was strengthened, total exports recorded a record number of 824.9 billion dollars in 2024-2025, an increase of 6.01% from the previous year.
Foreign exchange reserves rose to $ 697.9 billion at the end of June 2025, providing coverage for more than 11 months of imports, and gives the economy more safety to global fluctuations.
Investor confidence and financial indicators
Indian financial markets are witnessing a clear prosperity, as the number of individual investors doubled to 132 million in 2024, compared to 49 million in 2019.
Live foreign investment flows increased to 81 billion dollars, an increase of 14% over the previous year, supported by facilitating policies that allow foreign ownership in most sectors.
