Japan's JCRA Upgrades India's Sovereign Rating to 'A-'
JCRA upgrades India’s Long-Term Foreign Currency and Local Currency Issuer Ratings from ‘BBB+’ to ‘A-’; maintains Stable Outlook
Sept 3, 2026 - Japan Credit Rating Agency (JCR) has upgraded India’s Long-Term Foreign Currency and Local Currency Issuer Ratings by one notch from ‘BBB+’ to ‘A-’, while maintaining the Stable Outlook. JCR has also raised India’s country ceiling by one notch to ‘A’.
The agency noted that India’s economy has maintained a high growth rate, supported by robust private consumption and public investment. It highlighted the Government’s continued implementation of policies conducive to productivity growth and economic development.
JCR recognised the improvement in the quality of fiscal expenditure, with greater emphasis on capital expenditure, particularly infrastructure investment. It noted that the Central Government’s fiscal deficit declined from 4.7% in FY25 to 4.4% in FY26, while capital expenditure remained high.
It highlighted the significant improvement in the overall soundness of India’s financial system and said that India’s current account deficit remains contained, supported by a surplus in the services balance.
The government has welcomed this development which has come in the wake of challenging global cues. Previously, over the past year, Morningstar DBRS had upgraded India’s sovereign rating in May 2025, followed by S&P Global Ratings in August 2025 and Rating and Investment Information, Inc. (R&I), Japan, in September 2025.
