Page 23 - FIPI - Policy Economic Report - May 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Despite India’s progress in terms of GDP size (nominal), its per capita ranking is low, at 144th
globally in the world. According to IMF, it is $2,850-2,900, which is far less than some of smaller
countries. The top three countries in terms of per capita is Luxembourg ($141,080), Switzerland
($111,716) and Ireland ($107,243).

Figure 14: India’s per capita GDP (USD) at current prices

May 2025 Source- IMF

9. India gets upgraded to ‘BBB’ with a ‘Stable’ trend in rating by Morningstar DBRS, a global
sovereign credit rating agency

? The global sovereign credit rating agency, Morningstar DBRS, upgraded India’s Long-Term
Foreign and Local Currency – Issuer Ratings from BBB (low) to BBB with a Stable trend.

? India’s Short-Term Foreign and Local Currency Issuer Ratings were also upgraded to R-2
(high) from R-2 (middle) with a Stable trend.

? Key drivers for the upgrade include India’s structural reforms through infrastructure
investments, digitalisation etc., all of which facilitated fiscal consolidation (declining debt
and deficit) and sustained high growth (clocking an average GDP growth of 8.2% during
FY22-25) with macroeconomic stability (stabilised inflation, range bound exchange rate and
sound external balance). A resilient banking system featuring well-capitalised banks with a
high capital adequacy ratio and a 13-year low non-performing loans was another significant
driver for the upgrade.

? The report also stated that despite the current public debt levels, risks to debt sustainability
are limited due to local currency denomination and long maturity structures. Further,

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