India has received another boost to its global financial standing. Japan’s Rating and Investment Information, Inc. (R&I) upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’, while keeping a “Stable” outlook.
This is India’s third rating upgrade in 2025, following similar moves by S&P and Morningstar DBRS. R&I said India’s position as one of the largest and fastest-growing economies, along with strong policies, has driven the decision.
The agency praised India’s demographic advantage, strong domestic demand, and fiscal discipline. Rising tax revenues and subsidy cuts have kept debt levels manageable. R&I also highlighted India’s stable current account deficit, healthy remittances, low external debt, and strong foreign exchange reserves as signs of financial stability.
According to the agency, risks such as global tariff hikes remain. However, India’s domestic demand-led growth model and limited reliance on US exports reduce exposure.
R&I also credited Prime Minister Narendra Modi’s government for attracting foreign manufacturers, boosting infrastructure, lowering energy dependence, and pushing legal reforms.
With three upgrades in five months, India’s economic resilience and fiscal management are winning global confidence. The government welcomed the move and reaffirmed its focus on inclusive growth and macroeconomic stability.
