JCR Boosts India’s Currency Issuer Ratings to A‑Stable on Strong Momentum

In a statement released on September 2, Japan Credit Rating (JCR) raised India’s foreign‑currency long‑term issuer rating and local‑currency long‑term issuer rating from BBB+ to A‑Stable. The agency cited the country’s “high‑velocity” economic growth as the primary catalyst for the upgrade. India’s GDP growth has consistently lingered near 7 percent, propelled by robust consumer spending and expanded public investment.

Supportive government measures—such as the strengthening of digital public services and the full implementation of the Goods and Services Tax—have fortified the fiscal base and enhanced tax compliance. JCR’s analysis shows a 7.7 percent growth in FY26 and projects a continued trajectory above 6 percent for FY27, aided by tax reforms and GST revenue streams.

Despite a modest rise in food prices linked to Middle‑East tensions, inflation is still within the RBI’s target corridor. The rating agency also highlighted the health of the banking sector, noting that the non‑performing loan ratio has fallen below 2 percent thanks to the RBI’s proactive monitoring and the introduction of a new insolvency and restructuring framework. The first quarter of FY27 (April‑June) posted a 7.8 percent growth rate, outpacing the same quarter last year’s 6.9 percent and exceeding the central bank’s 7 percent projection.