S&P Global Ratings upgraded India's long-term sovereign credit rating to 'BBB' from 'BBB-' with a stable outlook on August 14, 2025, marking the first upgrade since 2007. The agency cited India's economic resilience, robust growth, sustained fiscal consolidation, improved monetary policy framework, and infrastructure investment as key factors behind the upgrade. Despite concerns over US tariffs, including a 50% tariff imposed by the Trump administration, S&P noted minimal impact due to India's low export exposure to the US (2% of GDP) and exemptions for critical sectors such as pharmaceuticals and electronics. The upgrade also extended to several Indian financial institutions, including the Export-Import Bank of India, Indian Railway Finance Corporation, seven major banks such as HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, and non-banking financial companies like Bajaj Finance and L&T Finance. The Indian government welcomed the decision, highlighting it as a motivational milestone for economic policy and a boost to investor confidence amid global uncertainties and fiscal pressures. The upgrade is expected to provide relief to India's bond market and enhance the country's appeal to foreign investors.