Japan Credit Rating Agency upgrades India's sovereign rating to A- from BBB+

Japan Credit Rating Agency has upgraded India's sovereign rating to A- from BBB+, with a stable outlook. The upgrade, announced on September 2, marks the highest rating assigned by any major international sovereign ratings agency to India and the first A- category rating in over 35 years. JCR had maintained India's BBB+ rating since 2007.

The agency cited India's sustained 7% GDP growth rate as the primary driver, along with strengthening economic foundations including digital public infrastructure, GST implementation, enhanced government spending quality, a healthier financial system, and a resilient external position. India achieved 7.8% real GDP growth in Q1 FY 2026-27.

This upgrade marks a significant milestone for India's credit profile, representing stronger confidence in the country's economic trajectory and macroeconomic stability.