S&P Global Ratings on Thursday lifted India’s long-term sovereign credit rating to “BBB” from “BBB-” and affirmed a stable outlook, the country’s first upgrade in 18 years. The agency simultaneously raised the short-term rating to “A-2” from “A-3”. The rating firm cited India’s “buoyant economic growth” alongside an enhanced monetary policy framework that is anchoring inflation expectations. It also pointed to New Delhi’s progress on fiscal consolidation, improved quality of public spending and an expanded infrastructure programme. S&P said recently threatened U.S. tariffs should be “manageable” given India’s reliance on domestic demand. Financial markets welcomed the decision: the rupee firmed to 87.58 against the U.S. dollar while the benchmark 10-year government bond yield slipped seven basis points to 6.38%. The Finance Ministry described the move as a vote of confidence in its policies. S&P signalled that future upgrades depend on further deficit reduction, but warned it could revisit the rating if fiscal discipline weakens or growth slows materially.