India’s credit rating has been upgraded by Japan Credit Rating Agency (JCR) from ‘BBB+’ to ‘A-’, reflecting the country’s strong economic fundamentals and improving financial and fiscal position.
- Rating upgrade: ‘BBB+’ → ‘A-’
- Outlook: Stable
- Country ceiling: Upgraded by one notch to ‘A’
- Key reasons: Strong economic growth, effective economic policies, improved fiscal quality and a stronger financial system.
- Growth drivers: Robust private consumption and public investment.
- Economic reforms: Digital Public Infrastructure and Goods and Services Tax (GST) have strengthened India’s economic foundations.
- Fiscal improvement: Central Government fiscal deficit declined from 4.7% in FY25 to 4.4% in FY26.
- Capital expenditure: Remained high, with greater focus on infrastructure investment.
