The rating agency said India's economic prospects remain strong, underpinned by the dynamic service sector, gradual deregulation of the industrial sector, continued trade liberalization, and modest improvements in infrastructure.
Economic growth is also benefiting from higher consumption and private investment demand, due to a growing middle class and favourable demographics, S&P said.
"Commitment to fiscal consolidation across all levels of government looks to be entrenched, aided by both strong revenue collection and expenditure controls," S&P's credit analyst Takahira Ogawa said.
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