By Madhusudan Sahoo
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New Delhi: With the country’s robust and resilient macroeconomic fundamentals, Union finance ministry on Friday lauded Japan’s Rating and Investment Information, Inc (R&I) for its ratings which upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’, while retaining the ‘stable’ outlook for the Indian economy.After global rating agency S&P upgraded India’s sovereign rating to ‘BBB’ from BBB- in August 2025 and Morningstar DBRS’ upgrade to ‘BBB’ from low of BBB in May 2025, this is the third such upgrade of India by an Asian sovereign credit rating agency this year.As per R&I’s India sovereign rating review, the ratings upgrade is supported by India’s position as one of the world’s largest and fastest-growing economies, underpinned by its demographic dividend, robust domestic demand, and sound government policies.In a statement, the finance ministry also welcomed the rating upgrade by R&I, saying that the government remains committed to building on this momentum through policies that promote inclusive, high-quality growth alongside fiscal prudence and macroeconomic stability.“Three credit rating upgrades for India in five months reflect increasing global recognition for India’s robust and resilient macroeconomic fundamentals and prudent fiscal management, and underscore global confidence in India’s medium-term growth prospects amid prevailing global uncertainties,” the ministry said.“The policies of the administration of Prime Minister Narendra Modi aimed mainly at attracting foreign manufacturers to India, developing infrastructure, institutionalising the legal framework to improve the business environment, reducing the reliance on energy imports and ensuring economic security,” the ministry added.R&I also recognised the progress in fiscal consolidation by the government, driven by buoyant tax revenues and rationalisation of subsidies, and a manageable level of debt, along with high growth. “India’s strengthened external stability, reflected in modest current account deficit, stable surpluses in services and remittances, low external debt-to-GDP ratio, and sufficient forex cover,” it said.
