After Moody's upgraded India's sovereign rating last week, raising hopes that Standard & Poor's will follow suit, S&P retained its BBB- rating on rating with a stable outlook. While S&P has retained India's sovereign rating, the global firm has pointed out certain parameters which, if India improves, may lead to an upgrade.\u00a0In its commentary,\u00a0S&P took a favourable view of\u00a0Narendra Modi\u00a0administration\u2019s economic reforms undertaken and lauded India\u2019s fiscal consolidation drive. Notably, S&P had last upgraded India\u2019s rating from junk grade \u201cBB+\u201d to lowest investment grade \u201cBBB-\u201d 10 years ago in 2007. S&P has since retained India\u2019s rating at that level, citing the country\u2019s low GDP per capita and weak public finances. Last year, the global firm had said, \u201cThe outlook indicates that we do not expect to change our rating on India this year or next, based on our current set of forecasts.\u201d We take a look at what India needs to do to get a S&P rating upgrade. S&P noted that there will be an upward pressure on the ratings if the net government debt reduces. Even last year, the credit rating agency had said that an upgrade could emerge if the government reforms markedly improved India\u2019s fiscal performance and pushed down the level of net general government debt below 60% of the GDP. Currently, India\u2019s general government debt amounts to about 68% of the GDP. Further, S&P says that there would be an upward pressure on ratings if reforms markedly improve fiscal out-turns. Notably,\u00a0S&P had appreciated India\u2019s structural reforms such as GST in a recent commentary on India. \u201cThe government\u2019s proposed capital infusions step will help to address the banks\u2019 bloated balance sheets, which are partly constraining the economy,\u201d said S&P Global Ratings credit analyst Amit Pandey. India should look to improve on these parameters not merely for an upgrade, but also to maintain the current rating and outlook. S&P notes that there would be a downward pressure if growth disappoints, and fiscal deficit rises significantly. last week, after Moody's Investor Service upgraded India,\u00a0it also said that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating. \u201cThe rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply,\u201d noted Moody\u2019s in its report.