India Gets S&P Upgrade – Facts Over Rhetoric
S&P Global has raised India’s credit rating to BBB (from BBB-) with a Stable outlook — first upgrade since 2007. This came just after former U.S. President Donald Trump called India a “dead economy” and announced 25–50% tariffs on Indian goods.
Why S&P Upgraded:
GDP grew 8.8% avg in FY22–24; expected 6.5–6.8% ahead.
Debt-to-GDP to drop from 83% (FY25) to 78% (FY29).
Inflation under control via RBI’s targeting policy.
U.S. exports only ~2% of GDP — tariffs have small effect.
Rising forex reserves, stable current account.
Investor Views:
FIIs: 2025 YTD $9.2B equity outflow; selling IT/FMCG, buying Banks, Industrials, Telecom. Upgrade may draw bond inflows and selective equity buying.
DIIs: July MF inflow ₹42,700 cr, SIP ₹28,400 cr; focus on banks, manufacturing, consumption.
Retail: Demat accounts crossed 20 cr; SIP habit strong; favourites include Banks, Autos, Defence, Rail, Renewables.
Sectors That May Benefit:
Banks/NBFCs: Cheaper borrowing, strong credit demand –