New Delhi, 02 September (H.S.): There is positive news on the economic front as Japanese credit rating agency Japan Credit Rating Agency (JCR) has upgraded India’s sovereign rating by one notch from ‘BBB+’ to ‘A-’. JCR had earlier assigned India a ‘BBB+’ rating.

JCR, Japan’s credit rating agency, on Wednesday upgraded India’s rating by one notch to ‘A-’ with a stable outlook. In a statement, the agency cited India’s ‘strong’ economic growth and improvement in its fiscal position as the key factors behind the upgrade.

JCR said that the Indian economy, with a population of more than 1.4 billion and a gross domestic product (GDP) of $3.9 trillion at current prices, is expected to maintain a high growth rate of more than 6 per cent in the current financial year 2026-27.

In an official statement, JCRA said the Indian economy has sustained a high growth rate of around 7 per cent, supported by robust private consumption and public investment. The Government of India has also implemented policies aimed at boosting productivity and economic growth. These include the development of digital public infrastructure and the implementation of the Goods and Services Tax (GST).

The agency said the Government of India has consistently implemented policies conducive to productivity growth and economic expansion. These include the development of digital public infrastructure and the implementation of the Goods and Services Tax (GST). These measures have further strengthened the country’s economic fundamentals. JCR also highlighted the improved financial condition of the non-banking financial sector, which has contributed to a significant strengthening of India’s financial system in recent years.

The rating agency said, “In view of India’s solid economic growth, the effectiveness of economic policies aimed at strengthening the foundations of growth, and the improved resilience of the financial system, JCR has upgraded India’s long-term issuer credit ratings in both foreign and local currency by one notch to ‘A-’.”

The agency’s ‘A’ rating indicates a high level of certainty in the fulfilment of financial obligations, while ‘BBB+’ signifies an adequate level of certainty. Last month, two global rating agencies, S&P and Fitch, also retained India’s investment-grade rating. They cited the country’s dynamic and rapidly growing economy, policy stability and high levels of investment in infrastructure as the basis for maintaining the ratings.

Notably, India’s economic growth rate stood at 7.8 per cent in the first quarter (April-June) of financial year 2026-27, exceeding the Reserve Bank of India’s (RBI) estimate of 7 per cent. The economy had also grown by 7.8 per cent in the previous financial year 2025-26. India’s current account deficit widened to $4.2 billion, or 0.5 per cent of GDP, in the June quarter, compared with $3.4 billion in the corresponding quarter of the previous financial year. Meanwhile, India’s foreign exchange reserves reached a record high of $729.33 billion in the week ended August 21.

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Hindusthan Samachar / Jun Sarkar