India's economy shatters a 35-year barrier to enter A-rated club
Indian Economy: Japan Credit Rating Agency (JCRA) has upgraded India’s sovereign credit rating from BBB+ to A-, restoring an A rating for India after more than 35 years. The upgrade follows rating increases by Morningstar DBRS, R&I and S&P Global Ratings. India’s strong economic growth, improving fiscal position, stronger banking system, digital infrastructure and low external vulnerability are…
India's sovereign credit rating has risen from BBB+ to A- after more than three decades. Japan Credit Rating Agency's (JCRA) decision on Wednesday marked the first time since 1988 that India has held an A-level sovereign rating. This upgrade comes after three consecutive rating upgrades in 2025 by Morningstar DBRS, S&P Global Ratings and Japan's R&I. The sequence suggests that India's improving economic fundamentals are now recognized by an increasing number of international rating agencies.
The downgrade to A- is attributed to solid economic growth, effective economic policies, strong private consumption, public investment and a more robust financial system. In the first quarter of 2026, India's GDP grew by 7.8%, surpassing expectations. Private investment, including capital investment and gross fixed capital formation, has also shown positive growth.
However, despite this rating improvement, three of the Big Three global rating agencies - Moody's, Fitch and Moody's - have retained India's sovereign rating at the lowest investment-grade level. This discrepancy between India's economic performance and its rating rating highlights the ongoing challenge of upgrading the country's credit rating with these major agencies.
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