Sovereign Ratings: The Reputation Penalty
India's Rating
BBB (S&P) and Baa3 (Moody’s) — a notch above speculative grade, despite $700+ billion in forex reserves and zero sovereign defaults in history.
Direct Financial Impact
Extra $2.5–3.3 billion annually in interest payments on public debt.
Global Perspective
Ratings methodologies ignore India’s fiscal discipline and resilience, perpetuating a costly reputation discount.
Private Sector Penalty
Companies like Tata Steel pay $5–12 million more per year in bond premiums than peers in equally western economies.