Japan based Rating & Investment Information Inc (R&I) has revised India's sovereign ratings to BBB+ or stable outlook. This is the country's third sovereign rating upgrade this year. The rating upgrade is likely to spur foreign investments in the country and boosts the government's plans to shore-up investments into India.
In a release, the Ministry of Finance welcomed the move, calling it a strong endorsement of India’s robust macroeconomic fundamentals and sound fiscal management.
According to R&I’s sovereign review, the upgrade reflects India’s position as one of the world’s fastest-growing economies, supported by its demographic dividend, buoyant domestic demand, and effective government policies. The agency highlighted progress in fiscal consolidation, driven by rising tax revenues, subsidy rationalisation, and a manageable debt profile, along with strong growth prospects.
The upgrade follows S&P’s revision to ‘BBB’ in August 2025 and Morningstar DBRS’ upgrade to ‘BBB’ in May 2025.
