Japanese Credit Rating Agency (JCRA) has upgraded India's sovereign rating to A- from BBB+, citing the country's solid economic growth, robust private
consumption and public investment, along with improvements in the soundness of its financial system. In an official statement, JCRA said, "the Indian economy has maintained a high growth rate of around 7%, 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. Meanwhile, the banking sector’s nonperforming loan ratio has declined to below 2%, 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. 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-.” In fact on the growth outlook and inflation JCRA stated, "India has a population of more than 1.4 billion and nominal GDP of USD 3.9 trillion. In FY2026, private consumption remained robust, supported by personal income tax cuts and reductions of GST rates, with the economy growing 7.7% in real GDP terms. The economy is expected to retain a high growth rate of over 6% in FY2027. Inflation has been rising since the beginning of 2026, reflecting higher food prices caused by unfavorable weather conditions and higher energy prices amid escalating tensions in the Middle East. Nevertheless, the inflation rate has remained within the RBI’s target range."
