India's credit ratings upgrade is long overdue: RBI Governor Mr. Shaktikanta Das

Reserve Bank of India (RBI) Governor Mr. Shaktikanta Das stressed the overdue necessity of a credit rating upgrade for India, citing strong macroeconomic fundamentals and robust growth momentum. He highlighted India's ability to meet external obligations and its significant foreign exchange reserves, which boost investor confidence.

S&P Global Ratings recently upgraded India's credit rating outlook from 'stable' to 'positive' in May, acknowledging policy stability, ongoing economic reforms, and substantial infrastructure investments driving long-term growth. Despite maintaining India's lowest investment-grade sovereign rating (BBB-), this marks the first positive outlook change by S&P since September 2014. Finance and Corporate Affairs Minister Ms. Nirmala Sitharaman welcomed the upgrade, attributing it to India's resilient economic performance and optimistic outlook bolstered by extensive reforms and decisive leadership.

Fitch and Moody's maintain a 'stable' outlook for India, assigning the lowest investment-grade sovereign rating. The advocacy for a credit rating upgrade reflects growing confidence in India's economic trajectory and fiscal management amidst global uncertainties. He noted investor trends toward independent analyses and expressed confidence in the government's fiscal consolidation efforts, aiming to reduce the fiscal deficit from 5.1% to 4.5% by FY26, as outlined in the interim Budget.

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