New Delhi, Aug. 14 -- S&P Global Ratings awarded India its first rating upgrade in 18 years, signalling confidence in the country's ability to ride out global shocks, including US tariffs, citing its resilient economy and fiscal discipline.

The global rating agency on Thursday upgraded India's long-term sovereign credit rating to BBB from BBB-, also citing policy measures to contain inflation.

S&P's decision to lift India a notch higher within the investment-grade category is expected to gradually ease the country's borrowing costs by narrowing risk premiums on government debt and improving funding terms for top-rated companies, experts said.

While the immediate market impact may be modest, a higher sovereign rating strengthens India's...