(MENAFN- IANS) New Delhi, Aug 14 (IANS) Citing economic resilience and sustained fiscal consolidation, global credit ratings agency S&P Global on Thursday upgraded India's long-term unsolicited sovereign credit rating to "BBB" from the earlier "BBB-", ahead of the 79th Independence Day.

In a note, S&P Global said the stable outlook reflects continued policy stability and high infrastructure investment, which are set to boost India's long-term growth.

"That, along with cautious fiscal and monetary policy that moderates the government's elevated debt and interest burden, will underpin the rating over the next 24 months," the rating agency said.

The short-term rating on India has also been revised to A-2 from A-3 earlier, and the transfer and convertibility assessment has been revised to A- from BBB+.

The impact of US tariffs on India will likely be manageable, with sound economic fundamentals expected to support the country's growth momentum over the next two to three years, according to the note.

In May 2024, S&P had revised its outlook on the Indian economy to positive from its earlier rating of stable, saying that it may raise the sovereign rating if India's fiscal deficit narrows meaningfully.

According to the note, India is prioritising fiscal consolidation, demonstrating the government's political commitment to deliver sustainable public finances, while maintaining its strong infrastructure drive.

The stable outlook reflects our view that continued policy stability and high infrastructure investment will support India's long-term growth prospects. That, along with cautious fiscal and monetary policy that moderates the government's elevated debt and interest burden, will underpin the rating over the next 24 months."

"In addition, monetary policy settings have become increasingly conducive to managing inflationary expectations," the note added.

The upgrade of India reflects its buoyant economic growth against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations.

"Together with the government's commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics. India remains among the best-performing economies in the world," said the note.

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