The outlook on the long-term rating remains stable, the rating agency said.
The 'BBB' rating category means an entity has adequate capacity to meet its financial commitments in the long-term.
However, negative means that a rating may be lowered, while A-3 rating means the entity has adequate capacity to meet financial obligations in the short-term.
The ratings on India reflect the country's strong economic growth prospects and its deep government debt market that helps accommodate its weak fiscal position, S&P said in a statement on Friday.
"Given the buoyant private and public investments with some progress in economic reforms, India's business environment is likely to improve in the years ahead, notwithstanding the current dislocations in global credit markets," said S&P's
credit analyst Takahira Ogawa.
Monetary and fiscal reforms, coupled with strict fiscal financing regulations, have led to more robust financial and government securities markets, reinforcing fiscal discipline.
"The ratings on India remain constrained by a weak fiscal profile, mainly the high government debt burden and deficit, which are still among the largest for rated sovereigns."
Commitment to fiscal consolidation across all levels of government has been one of the supporting factors for the sovereign credit rating in the past several years.
"However, higher oil prices and populist measures for the coming general election have weakened the government's efforts in fiscal consolidation," he said.