New Delhi: S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after over 18 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation. The rating upgrade to ‘BBB’ will help lower borrowing cost of Indian companies in international markets.

“India remains among the best performing economies in the world. The quality of government spending has improved in the past five to six years,” S&P Global Ratings said.

The impact of US tariffs on the Indian economy will be ‘manageable’, S&P said, adding that a 50 per cent tariff on US exports (if imposed) will not pose a ‘material drag’ on growth.