Over the past few years, India has made progress in restoring fiscal discipline - anchored in strong economic growth, improved fiscal management and a conscious shift towards better quality public expenditure.
In May 2024, S&P Global Ratings revised India's outlook to 'positive', and in August 2025, upgraded its sovereign rating to 'BBB', its first upgrade in nearly 20 years. Yet, despite these improvements, other major agencies like Moody's and Fitch continue to rate India at the lowest rung of investment grade.
