S&P Global Ratings affirmed India's long-term sovereign credit rating at 'BBB' and short-term rating at 'A-2', with a stable outlook, according to a Thursday commentary.
The ratings agency expects India's economic growth to slow to 6.6% in fiscal 2027 from 7.7% in fiscal 2026, weighed by higher energy prices and weaker agricultural conditions.
It forecasts growth to average 7.0% over the next three years, supported by public investment, consumer demand and policy continuity.
S&P expects India's general government fiscal deficit to narrow to 6.6% of GDP by fiscal 2030, down from 7.3% in fiscal 2027, while net general government debt is projected to decline to 79.3% of GDP by fiscal 2030, down from 85.4% in fiscal 2025.