Japanese credit rating agency JCR upgrades India’s foreign and local currency long-term issuer rating as ‘stable’
The agency highlights that Indian economy has maintained a high growth rate of around 7 per cent, supported by robust private consumption and public investment
Japan Credit Rating Agency Ltd (JCR) on Wednesday upgraded India’s foreign and local currency long-term issuer rating from BBB+ to A- with a stable outlook, driven by country’s solid economic growth, the effectiveness of economic policies that strengthen the foundations for growth, and the improved soundness of the financial system.
The agency highlighted that Indian economy has maintained a high growth rate of around 7 per cent, supported by robust private consumption and public investment.
The Government of India has steadily implemented policies conducive to productivity growth and economic development, including the development of digital public infrastructure and the implementation of the goods and services tax (GST), strengthening the country’s economic foundations as compared to the past.
It noted that India’s banking sector’s nonperforming loan ratio has declined to below 2 per cent, helped by the establishment of the Insolvency and Bankruptcy Code and the Reserve Bank of India’s (RBI) strengthened financial supervision and macroprudential policies.
The financial foundation of the non-banking financial sector has also strengthened, contributing to a significant improvement in the soundness of the financial system in recent years.
In addition, the rating has also raised the country ceiling by one notch to ‘A’.
According to the JCR, India’s democratic federal state faces structural challenges that tend to keep fiscal deficits at elevated levels due to complex intergovernmental fiscal relations, fiscal transfer arrangements aimed at reducing disparities among states and the fiscal management that is susceptible to electoral cycles.
Interestingly, the news comes after the Ministry of Statistics and Program Implementation on Monday stated that India's economy grew by 7.8 per cent in the April-June quarter of FY26–27, significantly above economists' projections, with growth supported by robust domestic economic activity which helped it survive external and geopolitical headwinds.
