According to the monthly review by the Department of Economic Affairs under the Ministry of Finance, strong macroeconomic fundamentals continue to support the resilience of the Indian economy.
Recent policy initiatives by the government, such as the establishment of a Task Force for Next-Generation Reforms and the upcoming GST reforms, deregulation initiatives of the According to the July report, which was issued on Wednesday, the sovereign rating improvement, paired with the states, will help lower borrowing rates, bring in foreign investment, and boost investment and consumption.
By ensuring that India extends its own line of progress, becomes more resilient, inclusive, and, ultimately, prosperous, these reforms signal the start of a rapid period of governance change. It stated that in an age when nations are increasingly focused on their own economic interests, it is also globally competitive.
Due to its strong macroeconomic performance and solid fundamentals over the previous few years, India has earned a well-deserved sovereign rating upgrade from the S&P credit rating agency to 'BBB'.
According to the monthly review, the upgrade highlights India's robust development, stable inflation expectations, and better credit indicators, all supported by fiscal consolidation and higher spending quality.
The Indian economy continues to show resilience in July 2025, building on the expansion impetus it picked up in the first quarter of FY26.
Strong business activity is indicated by a 16-month high in PMI manufacturing and a record number of eway bill creations. Additionally, the report said that the higher increase in the services PMI suggests growth in the services sector.
Since October 2024, headline inflation has continued to decrease, falling below 2% due to food deflation and a positive base effect. tolerable limit of percent in July 2025.
India, it stated, has adopted a measured strategy to negotiating FTAs in the ever-changing global trade environment, with the goal of increasing market access while safeguarding domestic interests.
It has informed that negotiations are still ongoing with a few other countries and that two significant agreements, the IndiaUK CETA and the IndiaEFTA TEPA, have recently been signed.
