India-US Tariff War / Trump had called India a dead economy, now America has expressed confidence

India-US Tariff War: Some time ago, US President Donald Trump made a controversial comment about India's economy, in which he termed India as a "dead economy". This statement came amid tensions in US-India relations over trade policies and the purchase of cheap oil from Russia. Trump expressed his displeasure and said, "I don't care what India does to Russia. Both of them together can bring down their dead economies." This statement was sharply criticized in India, and many economic experts termed it factually incorrect. But now, in an ironic twist, a leading US rating agency S&P Global has upgraded its rating on India's economic condition, which is a clear evidence of India's economic strength.

S&P Global gave better rating to India

US credit rating agency S&P Global has increased India's long-term unsolicited sovereign credit rating from "BBB-" to "BBB". This upgrade reflects the growing stature and stability of India's economy globally. S&P Global has cited India's strong economic foundation, policy stability, and continued investment in infrastructure as the main reasons behind this decision. The agency says that India's economic growth rate will remain strong in the next two to three years, and the government's fiscal discipline will make a significant contribution in this direction.

What is the importance of credit rating?

Credit rating is an important parameter of a country's economic credibility. It helps investors understand how well a country can meet its financial obligations. S&P Global's "BBB" rating indicates that India's economy is not only stable, but also has the ability to face global economic challenges. The agency also mentioned that even though tariffs imposed by the US or global economic instability may affect India, its impact will be limited and manageable.

Key factors driving India's economic growth

S&P Global's report highlights India's recent economic reforms, technology-driven governance, and heavy investments in infrastructure as the key reasons for the rating upgrade. Over the past few years, India has invested heavily in digital infrastructure, roads, rail, and energy sectors. These efforts have not only boosted job creation but also laid a strong foundation for long-term economic growth.

The report also states that India's policy stability and the government's reform-oriented approach have boosted global investor confidence. Programs such as Digital India, Make in India, and Startup India have made India an attractive destination on the global economic stage. In addition, India's young and skilled workforce, growing middle class, and consumer market growth have also boosted the economy.

What are the signs for the future?

S&P Global's rating upgrade is a positive sign for India. This not only reflects the confidence in India among global investors, but also indicates that India is able to maintain its growth momentum despite global economic volatility. This upgrade can help India access cheap and long-term capital, which will further boost investments in infrastructure and other critical sectors.

However, challenges still remain. Factors such as global trade wars, geopolitical tensions, and environmental risks can impact India's economy. Nevertheless, the S&P Global report emphasizes that India's policy framework and economic resilience are able to effectively address these challenges.