S&P Global keeps India BBB/A-2 rating with stable outlook
S&P Global just kept India's credit rating steady at "BBB/A-2" and says the outlook is stable.
It's giving a thumbs up to India's strong economy and solid institutions, but also flagging some worries, like high energy costs and weaker farm output.
Growth is expected to slow a bit in the current fiscal year (6.6% vs 7.7% in fiscal 2026), but S&P thinks India will bounce back, averaging around 7% growth over the next three fiscal years thanks to strong consumer spending and government investment.
S&P projects India deficit to 6.6%
S&P predicts India's general government fiscal deficit will shrink from 7.3% of GDP in fiscal 2027 to 6.6% by fiscal 2030, though things like fuel tax cuts or more subsidies could push the Union government's deficit above its current budget target.
Inflation should stay within the RBI's comfort zone (2% to 6%), despite near-term pressure from food and energy prices.
Overall, S&P expects India to keep showing resilience, even if global issues or tricky weather make things tough at times.