India's Sovereign Credit Rating Should Be Higher, Says Economic Advisor
Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council, believes India's sovereign credit rating should be two notches higher than its current level. He made this statement in response to S&P Global's recent upgrade of India's rating outlook to "positive" from "stable."
While welcoming the revision, Sanyal believes S&P is underestimating India's economic strength. "By any objective criteria, India should actually be rated one, if not two, notches above where it is right now," he said.
S&P's positive outlook suggests a potential rating upgrade within the next two years. The agency cited continued policy stability, deepening economic reforms, and high infrastructure investment as factors supporting this view.
The current 'BBB Minus' rating has been in place since 2007, with a stable outlook since 2014. Earlier this year, Fitch also affirmed India's sovereign rating at 'BBB Minus' with a stable outlook, citing strong medium-term GDP growth prospects and sound external finances. 'BBB Minus' is the lowest investment grade rating.