Foreign capital inflows into India are likely to accelerate following S&P's recent credit rating upgrade, which is also expected to lower borrowing costs for the country, said Sonal Badhan, Economist at Bank of Baroda (BoB).
India has received its first sovereign credit rating upgrade in 18 years, with S&P Global Ratings raising the country's long-term rating to 'BBB' from 'BBB-' and the short-term rating to 'A-2' from 'A-3', while keeping the outlook stable. The announcement, shared in a tweet by the Indian
In a significant boost to investor confidence, S&P Global Ratings has upgraded India's long-term unsolicited sovereign credit rating to 'BBB' from 'BBB-', while also raising the short-term rating to 'A-2' from 'A-3'.
S&P Global Ratings anticipates that the new regulations in Gold-Backed Loans will necessitate business model adjustments for lenders, with nimble players likely to gain a competitive edge.
To meet the country's ambitious 500 GW target, India's renewable sector will need to double its annual capacity addition to 50 gigawatts (GW) over 2025-2030, S&P Global Ratings said in a report.
India's government-owned non-bank financial institutions are expected to grab more market share in the coming year or two, according to S&P Global Ratings. It projected a sustained strong growth for the government-owned non-bank financials.
S&P Global Ratings has lowered the US GDP forecast for 2025, sharply by 50 basis points to 1.5 per cent, while raising its inflation forecast. For 2026, the US growth projection has been lowered by 20 basis points to 1.7 per cent.
The Reserve Bank of India also recently lowered the growth forecast for the current fiscal 2025-26 to 6.5 per cent from 6.7 per cent, amid uncertainties arising from trade worries following the reciprocal tariffs announced by the US.
Tightening regulations and stricter underwriting standards in Indian microfinance will rein in growth plans for sector lenders and defuse risk build-up for overleveraged borrowers, said S&P Global Ratings.
The Union Budget for 2025-26, presented on February 1, reinforces credibility in India's fiscal consolidation roadmap while emphasizing boosting the economy's overall growth potential, CareEdge Global Ratings said in a report.
Potential effects of the tariffs proposed by the Donald Trump administration are overwhelmingly negative, said a report published by a team of S&P Global Ratings' economics team.
Finance minister Nirmala Sitharaman on Saturday announced zero tax on income of up to Rs 12 lakh. The union government will forego a revenue of Rs 1 lakh cr because of this cut.