'This Was Much Required': PM EAC Member Sanjeev Sanyal Lauds S&P Upgrading India To BBB

Amid a landmark sovereign rating upgrade by S&P Global, Sanjeev Sanyal, Member of the Prime Minister’s Economic Advisory Council, hailed the move as a long-overdue recognition of India’s economic performance. 

While speaking to ANI after the agency raised India’s credit rating to ‘BBB’ from ‘BBB-’, Sanyal moted that the decision narrows the gap between how global agencies assess India and its actual growth record.

“Given our economic track record, I expect similar upgrades from other agencies in the near future,” he stated, adding that India may still be “underrated by one notch.”

In a significant boost to India’s economic standing, S&P Global Ratings on Thursday said the upgrade reflects New Delhi’s clear focus on fiscal consolidation, backed by political will to deliver sustainable public finances, along with a strong infrastructure push.

The agency also revised India’s transfer and convertibility rating to ‘A-’ from ‘BBB+’, pointing to a healthier monetary position and stronger external environment. It noted that India’s heavy reliance on domestic demand — which drives about 60% of GDP — gives the economy a built-in cushion against global disruptions, including recent tariff moves by the United States and changes in the sourcing of energy supplies.

Also Read: 'Agile, Active & Resilient': Govt Hails First S&P Upgrade In 18 Years For Indian Economy | Republic World

India’s public finances, once seen as a persistent weakness, are gradually improving. S&P expects the combined deficit of the Centre and states to shrink from 7.3% of GDP in FY2026 to 6.6% by FY2029.  This progress is linked to a clear shift in government spending priorities toward capital creation. In FY2026, the Union government’s capital expenditure is expected to reach Rs 11.2 trillion — roughly 3.1% of GDP — compared with 2% ten years earlier. 

With state spending included, public investment in infrastructure now amounts to around 5.5% of GDP, placing India among the leaders globally.

S&P underscored the fact the upgraded rating rests not just on numbers but on the broader framework of a dynamic economy, a strong external balance sheet, and democratic institutions that provide policy continuity. These factors, the agency said, create the conditions for steady growth and investor confidence in the years ahead.