On Jan. 30, 2007, Standard&Poor's Ratings Services raised its sovereign credit ratings on the Republic of India to 'BBB-/A-3' from 'BB+/B'. The outlook is stable. India is the thirteenth sovereign currently rated by Standard&Poor's that has made the transition to investment grade from speculative grade. The upgrade on India's ratings to investment grade reflects the country's strong economic prospects and external balance sheet, and its deep capital market, which supports a weak, but improving, fiscal position. India's economic prospects remain strong and are rising gradually, with GDP trend growth likely to average more than 7.5% in the medium term. The service sector is dynamic, while the industrial sector is benefiting from gradual deregulation, trade liberalization, and
