Embassy of India

Cairo, Egypt

Embassy of India
Cairo

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Standard & Poor Upgrades India’s Sovereign Rating to ‘BBB’

S&P Global has raised India’s long-term sovereign credit rating to 'BBB' from 'BBB-'. The stable outlook reflects confidence in India’s strong economic fundamentals and prudent policy management. The “transfer and convertibility assessment” has also been improved to 'A-' from 'BBB+', recognising India’s growing financial resilience. S&P last upgraded India in January 2007 to ‘BBB-’, hence, this rating upgrade comes after an 18-year gap. This upgrade highlights India’s robust and sustained economic growth, driven by high infrastructure investment, sound fiscal management, and a strengthened monetary policy framework that keeps inflation under control. 

Quick shots

• India’s GDP grew 6.5% in 2024–25, the highest among major economies. 
• Inflation fell to 2.82% in May 2025, the lowest level since February 2019. 
• Total exports reached a record USD 824.9 billion in 2024–25.
   

2. India’s growth story continues to draw global attention, backed by strong fundamentals and consistent performance. Real GDP expanded by 6.5 per cent in 2024–25. The Reserve Bank of India expects this pace to continue into 2025–26. Other projections echo this optimism, with the United Nations forecasting growth of 6.3 per cent this year and 6.4 per cent next year.
   
   
3. Over the past decade, India’s economic size has expanded sharply. In 2014–15, the GDP at current prices was US$ 1.25 trillion. This figure has risen to around US$ 4 trillion in 2024–25, more than tripling in ten years. 

Inflation Under Control

4. Inflation in India has eased sharply, offering relief to both households and businesses. In May 2025, the year-on-year inflation rate based on the Consumer Price Index (CPI) stood at 2.82 per cent. This marks the lowest level since February 2019. The Consumer Food Price Index (CFPI) recorded an inflation rate of just 0.99 per cent in May 2025. This is the lowest food inflation seen since October 2021. Rural and urban food inflation were almost identical, at 0.95 per cent and 0.96 per cent, respectively. 

Market Confidence at Record Levels

5. India’s capital markets are booming, and the confidence is visible. They have become a powerful engine for economic growth by turning household savings into investments. Despite global tensions and domestic uncertainties, the stock market in India outperformed many other emerging economies. The number of retail investors jumped from 49 million in 2019 to 132 million by 2024. This increase shows a growing public interest in equity markets and a belief in the country’s long-term potential.

Foreign Direct Investments

6. India continues to be a top choice for global investors. The country has an investor-friendly FDI policy, allowing 100 per cent foreign ownership in most sectors through the automatic route. As a result, FDI inflows rose to a USD 81 billion in FY 2024–25, marking a 14 per cent increase from USD 71.28 billion in FY 2023–24.
   
   
7. India’s foreign exchange reserves stood at USD 697.9 billion as of 20 June 2025. These reserves are enough to cover more than 11 months of goods imports, providing a safety net in times of global shocks. This means that even if exports slow down, India has enough foreign currency to pay for essential imports. At the same time, external debt remains at a moderate level, accounting for 19.1 per cent of the GDP as of March 2025. These numbers show that India’s financial position with the rest of the world is healthy and stable.

Manufacturing and Exports

8. India’s export performance continues to reflect the growing strength of its economy, particularly in services and high-value manufacturing. Over the past decade, the country has steadily expanded its footprint in global trade. This growth has been powered by stronger industrial capacity, greater competitiveness in services, and the rise of strategic sectors like defence production and electronics.
   
   
9. India’s total exports touched a new high of USD 824.9 billion in 2024–25, growing by 6.01 per cent from USD 778.1 billion in 2023–24. Services exports remain a key contributor. In 2024–25, India exported USD 387.5 billion worth of services, a 13.6 per cent increase over the previous year’s USD 341.1 billion. This strong and consistent growth highlights India’s ability to deliver high-quality services to global clients, particularly in IT, consulting, finance, and digital technologies.
   
   
10. Merchandise exports, excluding petroleum products, also achieved a record. In 2024–25, these exports reached USD 374.1 billion, growing by 6.0 per cent from USD 352.9 billion in the previous year. This is the highest export figure ever recorded. Much of this growth has come from sectors such as machinery, chemicals, electronics, and defence equipment, which are gaining traction in global markets.

Digital India

11. Digital India is bridging the gap between citizens and governance, connecting systems with essential services, and transforming challenges into solutions. It is more than a technological initiative; it is a national mission that underpins Aatmanirbhar Bharat (self-reliant India), reflecting the strength, capability, and self-reliance of a confident India in the 21st century. By 2030, the digital economy is expected to account for nearly one-fifth of overall GDP.
    
    
12. In recent years, India has witnessed an unparalleled rise in digital transactions, marking a significant milestone in its journey towards becoming a cashless society. At the forefront of India’s digital payment revolution is UPI (Unified Payment Interface) with a record hit of 185 billion transactions amounting to US$ 3 trillion in FY 2024-25.
    
    
13. Ensuring mobile coverage in remote and underserved areas has been a key focus in India, enabling all citizens to connect to the digital ecosystem and access essential services. More than 300 mobile manufacturing facilities manufacture mobile phones worth USD 65 billion in FY 2024-25 out of which almost USD 20 billion worth of mobile phones are exported globally. 
    
    
14. India’s economic performance over the past year reflects not just growth, but a deeper sense of stability and direction. With real GDP rising at 6.5 per cent and inflation easing to its lowest in years, India has shown that it can balance expansion with price stability. At the same time, strong participation in capital markets, record levels of exports, and healthy foreign exchange reserves point to growing confidence both at home and abroad.
    
    
15. Key sectors such as manufacturing, services, and infrastructure are pushing ahead, supported by steady investment and policy focus. External risks remain, but India’s fundamentals are sound. As the global economy continues to face challenges, India’s consistent performance offers reassurance that it is well placed to lead from the front and keep building a stronger, more inclusive future.