Mumbai, September 2: In a positive development for the country’s economy, Japan Credit Rating Agency (JCR) has upgraded India’s ‘Foreign Currency Long-Term Issuer Rating’ and ‘Local Currency Long-Term Issuer Rating’ from ‘BBB+’ to ‘A- Stable’. This upgrade is attributed to the robust growth of the Indian economy.
JCR noted that India’s economic growth rate remains high at 7 percent, supported by private consumption and government investment.
The policies of the Indian government are continuously aiding economic growth, including the development of digital public infrastructure and the implementation of the Goods and Services Tax (GST). These measures have strengthened the country’s economic foundation.
Furthermore, JCR stated that India’s economy grew at a rate of 7.7 percent in the fiscal year 2026, with an expected growth rate of over 6 percent in fiscal year 2027. This growth is bolstered by reductions in income tax and GST. However, rising tensions in the Middle East have led to increased food prices, contributing to inflation, which remains within the Reserve Bank of India’s (RBI) target range.
In its report, JCR praised the country’s banking sector, noting its strong position with the non-performing loan ratio dropping below 2 percent. This improvement is due to stringent oversight by the RBI and the implementation of the new Insolvency and Bankruptcy Code.
In the first quarter of fiscal year 2027 (April-June), the growth rate was recorded at 7.8 percent, surpassing the 6.9 percent growth rate of the same period last year by 0.9 percent. This figure exceeds the RBI’s estimates. During the announcement of monetary policy decisions in early August, RBI Governor Sanjay Malhotra projected a GDP growth rate of 7 percent for the first quarter of fiscal year 2027.
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