India gets its third credit rating upgrade in FY26

R&I raised India’s long-term rating to BBB+ from BBB, with a ‘stable’ outlook

- Rhik Kundu

India notched its third sovereign credit rating upgrade this fiscal year with Japan's Rating and Investment Information Inc. (R&d) raising the country's long-term rating to BBB+ from BBB, with a ‘stable’ outlook.

The move follows similar upgrades by S&P Global in August and Morningstar DBRS in May, marking a rare streak of upgrades for a major emerging economy at a time of global uncertainty.

R&d's rating upgrade for India on Friday comes as the economy navigates tariff wars ina volatile world, A stronger credit rating enhances India’s standing in global capital markets, paving the way for cheaper and more predictable access to funds for both the government and private sector.

For nearly two decades, India’s sovereign debt remained at the lowest investment grade of BBBat S&P. With the latest reassessments, it has now risen above that threshold. Earlier this year, Morningstar DBRS upgraded India’s rating to BBB from BBB (low).