The rating agency, however, pointed out that India's fiscal position remains precarious, with elevated fiscal deficits and net government indebtedness.
Fiscal deficits have exceeded the government's plan, S&P said, adding it expect limited consolidation over the next few years.
"S&P Global Ratings affirmed its 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local currency sovereign credit ratings on India. The outlook on the long-term rating is stable," it said in a statement.
India's economic growth is estimated to slow down to 5 per cent during 2019-20 and the government expects the GDP to rebound to over 6 per cent in the next financial year. NKD CS MKJ