S&P Global Ratings Applauds India's Consistent Post-Pandemic Economic Performance
In a significant endorsement of India's economic management, Yann Le Pallec, President of S&P Global Ratings, stated on Saturday that India's post-Covid expansion has emerged as one of the most consistent among major global economies. This achievement stems from structural reforms, vibrant entrepreneurial energy, and a forward-looking approach to debt and development strategies.
Viksit Bharat 2047: A Vision of Resilience and Ambition
"In our latest comprehensive report, we examined how India is navigating the complexities of the new global reality," Le Pallec explained. "What we discovered was not merely a story of resilience, but one of profound ambition that forms the very core of the Viksit Bharat 2047 vision."
The S&P Global Ratings president specifically highlighted India's sustained commitment to fiscal discipline, targeted public investments, and credible policy frameworks. These elements, he emphasized, have significantly enhanced international confidence in the country's long-term growth trajectory.
The Critical Link Between Trust and Economic Growth
Le Pallec pointed to the fundamental connection between trust, transparency, confidence, and capital flows within today's rapidly evolving global economy. "Few economies understand better than India that the price of trust is truly the price of growth," he asserted. "When trust breaks down, the cost of capital essentially becomes a tax on progress and development."
Bond Market Development and Global Integration
Referring to the growing depth and sophistication of India's domestic bond market alongside rising foreign participation, Le Pallec noted that the inclusion of Indian government bonds in global indices represents a transformative opportunity. "This development can significantly increase overseas investment flows and substantially expand funding opportunities for domestic companies over the coming years," he stated.
Such financial market advancements, according to the ratings executive, strengthen India's entire financial ecosystem and provide crucial support for sustainable long-term economic growth.
Global Economic Shifts and Emerging Market Leadership
"This evolving distribution of trust aligns perfectly with broader structural shifts occurring in the global economy," Le Pallec observed. "The center of global economic activity continues its steady movement eastward. Emerging markets are projected to represent approximately two-thirds of global growth this year, a trend strongly supported by domestic policy predictability at a time when global uncertainty is markedly increasing."
The Enduring Role of Credit Ratings in Uncertain Times
Le Pallec stressed that trust has always been the foundational element of financial systems worldwide. Credit ratings were originally created to help investors assess risk in emerging industries and markets. Over decades, standardized ratings evolved into important benchmarks for global investors, enabling more informed decisions and greater transparency during periods of economic uncertainty, including major downturns.
According to Le Pallec, while the fundamental role of credit ratings has remained largely unchanged in principle—providing independent assessments of risk—the environment surrounding them has transformed dramatically. Global markets today confront rising geopolitical uncertainties, shifting trade rules, and changing policy dynamics, all of which profoundly influence how trust is formed, maintained, and sometimes eroded.
Structural Changes in the Global Economic Order
He noted that the global order built upon predictable trade relationships and stable policy frameworks is undergoing significant structural change. As trust weakens in certain international relationships, countries and investors are increasingly focusing on strategic diversification. This includes reducing exposure to concentrated risks, actively seeking new partnerships, and strengthening domestic financial systems.
While these necessary adjustments may increase costs in the short term, Le Pallec suggested they can ultimately provide enhanced long-term resilience and stability for economies that implement them effectively.
