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Japan's rating and investment information (R&I) on Friday increased India's foreign currency issue rating from BBB to BBB+. Its outlook kept stable. This means that he is more trusting the economy of India. He cited strong domestic demand, fiscal discipline and better external stability. Just last month, the American credit rating agency also upgraded India's credibility by S&P.

R&I maintained India's short-term foreign currency date rating at A-2. This is the third such upgrade of this year. Earlier in August 2025, S&P did the rating from BBB-to BBB. Apart from this, in May 2025, Morningstar DBRS was BBB (Low) the country's rating with BBB (low). The agency says that India's economy is currently in its demographic dividend phase, will maintain strong growth despite global uncertainty. Real GDP rose 6.5% in FY 2024, with consumption, investment, and external demand support. The growth rate was 7.8% in April-June 2025. RBI has estimated 6.5% GDP growth for FY 2025.

The country's economy will increase

R&I believes that the economy will grow in mid-range of 6% from FY 2026 due to population growth, income catch-up effects, and public investment and economic policy of the government. The Government of India welcomed this upgrade and said that it confirms the dynamic and resilient economy of India. The government said that three credit rating upgrade upgrade in five months show India's strong macroeconomic fundamentals and smart fiscal management. This outlines the world's trust in India's mid-term growth prospects amid global uncertainties.

What bid agency on India's economy

R&I reported that the government has reduced the fiscal deficit slightly. In FY 2024, the Central Government Defisit was 4.8% of GDP, and a target of 4.4% for 2025. By March 2025, the centers and state combined date will be reduced by 80% of GDP, in which most of the date will be domestic. The agency also said that India's external stability has improved. In FY 2024, the current account deficit was less than 1% of GDP, which was supported by services and surplus of remedies. Adequate foreign exchange reserve and low external date ratio further reduced external risk. R&I also told some risk, such as America's 50% tariff on Indian exports. But it will be impact limited due to India's domestic demand.

R&I said that the Modi government's attempt to attract foreign manufactures, increase infrastructure and improve business environment is positive for long-term growth. But to become a developed economy by 2047, economic growth has to be intensified. The government will have to upgrade the Economic Development Framework, as well as balance the fiscal consolidation by addressing social issues like powerty and unacceptable.

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