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Beyond Averages: Will the next ratings upgrade take 17 years

Many would say it was only a matter of time after India’s outlook was upgraded to positive two years ago that a ratings upgrade was in the tow. S&P Global Ratings, last week, delivered the much talked about upgrade after a gap of 17 years, underscoring the strength of the Indian economy. But is it too late and will the next one take as much time. Welcome to Beyond Averages, our weekly data podcast where we try to decode the story behind the big numbers and this week we will be talking about S&P’s upgrade and the road ahead. More than the upgrade, it’s the outlook and forecast for India that seem reassuring. S&P expects Indian economy to weather the global uncertainty storm and grow at 6.8 percent starting FY27. The economy is expected to log a 6.5 percent growth this fiscal as per S&P. Moreover, the ratings agency expect debt to come down to below 80 percent and fiscal deficit to fall to 6.6 percent. But does that take us closer to the next upgrade. Not so much, S&P notes that for the next upgrade deficit needs to fall to 6 percent on a structural basis.

first published: Aug 19, 2025 11:09 am