India's creditworthiness raised to BBB+ by Japan's Rating & Investment Information Agency
India's Sovereign Credit Rating Upgraded by R&I
The Government of India has received a positive boost as Japan's Rating and Investment Information, Inc. (R&I) has upgraded India's long-term sovereign credit rating from 'BBB' to 'BBB+'. This marks the third sovereign rating upgrade for India in 2025, following similar moves by S&P and Morningstar DBRS earlier in the year.
The upgrade comes on the back of India's progress in fiscal consolidation, driven by buoyant tax revenues, rationalised subsidies, high growth rates, and a manageable level of debt. The government has made significant strides in reducing the fiscal deficit at a moderate pace, and the government debt ratio is expected to follow suit.
R&I's rating review attributes India's growth to its strong demographic dividend, robust domestic demand, and prudent government policies. The review also highlights the country's external stability, with a modest current account deficit, stable surpluses in services and remittances, a low external debt-to-GDP ratio, and sufficient foreign exchange cover.
The administration led by Prime Minister Narendra Modi continues to be praised for its efforts to attract foreign manufacturers, develop infrastructures, institutionalize the legal framework for businesses, reduce dependence on energy imports, and ensure economic security. The upgrade underscores global confidence in India's medium-term growth prospects amid prevailing global uncertainties.
However, R&I acknowledges the risk of increased U.S. tariffs but believes India's low reliance on U.S. exports and domestic demand-driven growth model will mitigate the impacts. The rationalization of Goods & Services Tax (GST) may lead to revenue losses, but these negative effects are likely to be partly offset by stimulated private consumption.
The Government of India has welcomed the upgrade as an affirmation of India's resilient macroeconomic fundamentals and prudent fiscal management. The government remains committed to building on this momentum through policies promoting inclusive, high-quality growth alongside fiscal prudence and macroeconomic stability.
It is important to note that this news article does not contain any advertisements, and the Government of India did not mention any new sovereign credit rating upgrade in this paragraph.
The international rating agency Fitch Ratings upgraded India's long-term sovereign bond rating from 'BBB' to 'BBB+' in September 2025, reflecting an improved credit profile. This upgrade further cements India's position as one of the world's largest and fastest-growing economies.
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