The good news from India keeps coming. This week, the international credit rating agency, Standard & Poors pronounced that the “Third World” nation had become so prosperous that the risk of lending money to the country had fallen significantly.
New York-based Standard & Poor’s said it upgraded India’s sovereign rating to BBB-, the lowest investment grade rating, from BB+, the highest junk rating.
The rating revision could help reduce India’s borrowing costs on the global market.
As anyone who has taken out a personal loan or mortgage will know, getting a stronger credit rating is a big deal. India is now ahead of economic basket-cases such as Argentina or Venezuela, and has got there by a programme of economic liberalisation. I keep banging on about the vigour of the Indian economy – notwithstanding the still-grinding poverty in parts of the country – because it is probably the most positive economic story of our times. It shouts, loud and clear, that markets work. Market economics is doubly potent when combined with a relatively robust civil society, protection of property rights and the priceless asset of an international language like English.
Meanwhile, India-based Tata Steel has sealed its purchase of UK steelmaker Corus.