S&P Global Ratings has upgraded India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook.

The US ratings agency said it was upgrading the world’s fifth-largest economy from BBB- to BBB, adding that it expects the impact of US President Donald Trump’s tariff blitz on India to be “manageable”. The outlook on the long-term rating, S&P noted, is “stable”.

US President Donald Trump's punitive tariffs on Indian imports will not impact India's economic growth, and its sovereign ratings outlook will remain positive, according to S&P Global Ratings Director YeeFarn Phua.

Trump suggested that Russia’s economic potential is being wasted due to global pressures and U.S. tariffs. “Their economy is not doing well right now because it’s been very well disturbed by this,” he said, singling out India’s purchases of Russian oil.

Former diplomat Vikas Swarup has suggested that one of the driving factors behind Washington’s recent punitive tariffs on India is US President Donald Trump’s displeasure over New Delhi’s refusal to acknowledge his claimed role in easing tensions with Pakistan earlier this year.