Japanese credit rating agency JCR on Wednesday upgraded India’s sovereign rating to ‘A-‘ with a stable outlook, citing “solid” economic growth and improved financial parameters.
The Indian economy has maintained a high growth rate of around 7 per cent, supported by robust private consumption and public investment, the Japan Credit Rating Agency (JCR) said in its India sovereign rating.
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.
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.
JCRA also pointed to the improvement in the banking sector, noting that the gross non-performing loan ratio declined to 1.8 per cent at the end of March 2026. The agency attributed the improvement to the establishment of the Insolvency and Bankruptcy Code (IBC), government capital injections and stronger supervision by the Reserve Bank of India (RBI).
The agency has upgraded the Republic of India’s Foreign Currency and Local Currency Long-term Issuer Ratings by one notch to A-. It has also raised India’s country ceiling by one notch to A.
“Considering India’s solid economic growth, the effectiveness of economic policies that strengthen the foundations for growth, and the improved soundness of the financial system, JCR has upgraded the Republic of India’s Foreign Currency and Local Currency Long-term Issuer Ratings by one notch to ‘A-‘,” it said.
The agency had a ‘BBB+’ rating on India.
JCR’s ‘A’ rating implies a high level of certainty to honour the financial obligations, while ‘BBB+’ denote an adequate level of certainty.
Last month, two global rating agencies, S&P and Fitch, had affirmed India’s investment-grade rating, citing a dynamic and fast-growing, robust economy with policy stability and high infrastructure investment.
Indian economy grew at 7.8 per cent in the June quarter of FY’27, beating the 7 per cent GDP growth estimates by the RBI. The economy grew at 7.8 per cent in FY’26.
(With agency inputs)
