The Government of India welcomes the decision of Japan Credit Rating Agency (JCR) to upgrade India’s Long-Term Foreign Currency and Local Currency Issuer Ratings by one notch from ‘BBB+’ to ‘A-’, while maintaining the Stable Outlook. JCR has also raised India’s country ceiling by one notch to ‘A’.
The upgrade reflects India’s solid economic growth, the effectiveness of economic policies in strengthening the foundations for growth, and the improved soundness of the financial system. JCR noted that the Indian economy has maintained a high growth rate, supported by robust private consumption and public investment.
The latest GDP estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) indicate that real GDP growth remained strong at 7.8 per cent in FY26. The growth momentum was sustained in Q1 of FY27, with real GDP growing by 7.8 per cent, despite prevailing global headwinds.
The agency also highlighted the Government’s continued implementation of policies conducive to productivity growth and economic development, including the development of digital public infrastructure and implementation of the Goods and Services Tax, which have strengthened India’s economic foundations.
The agency also recognised the improvement in the quality of fiscal expenditure, with greater emphasis on capital expenditure, particularly infrastructure investment. JCR noted that the Central Government’s fiscal deficit declined from 4.7% in FY25 to 4.4% in FY26, while capital expenditure remained high.
The upgrade comes against the backdrop of a challenging global environment and underscores the continued strengthening of India’s economic fundamentals, supported by sustained growth, effective economic policies, improved fiscal quality and a stronger financial system.
Source: pib
