SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance
The Japanese credit rating agency Rating and Investment Information, Inc. (R&I) has upgraded India’s long-term sovereign credit rating from BBB to BBB+, maintaining a “Stable” outlook - the third upgrade India has received this year. This follows earlier upgrades by S&P (from BBB– to BBB) in August 2025, and by Morningstar DBRS (from BBB (low) to BBB) in May.
R&I based its decision on several factors: India’s status as a fast-growing large economy, growing domestic demand, improved fiscal consolidation, stable external accounts, and manageable debt levels. The agency also downplayed risks from U.S. tariff increases, noting India’s reduced dependence on U.S. exports and its resilient growth model.
The upgrade bolsters India’s fiscal credibility, potentially lowering borrowing costs and attracting foreign investment. It provides a stronger backdrop for ambitious capital expenditure programmes and infrastructure finance and influences how multilateral lenders and credit markets price India’s external exposure.
Credit ratings are grades assigned by agencies (like S&P, Moody’s, Fitch, R&I) that show how risky it is to lend money to a country or company. Ratings run in steps. For investment grade, the order is usually:
BBB– → BBB → BBB+ → A– → A → A+ → AA– → AA → AA+ → AAA (highest).
Relevant Question for Policy Stakeholders:
How should India leverage this rating upgrade to accelerate investment in infrastructure, without jeopardising fiscal discipline?
Follow the full news here: Press Release – PIB