S&P upgrades India's outlook to 'positive' from 'stable'

New Delhi, S&P Global Ratings upgraded India's sovereign rating outlook to positive from stable after 14 years due to strong economic management by the Modi government, robust growth, better quality of public spending in the last 5 years, and expected continuity in reforms and fiscal policies.

The US agency mentioned on Wednesday that India could see an increase in its rating within the next 24 months if it implements a prudent fiscal and monetary policy to decrease the high debt and interest burden of the government, while also strengthening economic resilience.

S&P's rating remarks were made just a week after RBI transferred a record ₹2.10 lakh crore dividend to the government. The funds could be utilized to reduce the Centre's budget shortfall.

"India outlook revised to positive on robust growth and rising quality of Government spend; BBB- long-term and 'A-3' short-term unsolicited foreign and local currency sovereign credit ratings affirmed," S&P said.

It was reported that government spending has changed, with more money being allocated to infrastructure projects. This will help alleviate congestion to propel the country towards a more rapid growth path.

S&P stated that India's strong economic growth is positively affecting its credit indicators. He also mentioned"We expect sound economic fundamentals to underpin the growth momentum over the next two to three years. Regardless of the election outcome, we expect broad continuity in economic reforms and fiscal policies".