India’s Credit Rating Gets a Boost as Morningstar DBRS Upgrades to BBB

India has received a significant credit rating upgrade from global sovereign credit rating agency Morningstar DBRS, moving from BBB (low) to BBB with a stable trend. The upgrade reflects India’s strong economic fundamentals, structural reforms, and fiscal discipline, reinforcing its position as a resilient and growing economy.  

 

Economic Strengths Driving the Upgrade:  

- India’s sustained high GDP growth, averaging 8.2 percent from FY22 to FY25, played a crucial role in the rating improvement.  

- Structural reforms, including infrastructure investments and digital transformation, have strengthened fiscal consolidation and economic stability.  

- The banking sector has shown remarkable resilience, with well-capitalized banks and non-performing loans at a 13-year low.  

- Inflation remains within a manageable range, and the exchange rate has remained stable, contributing to macroeconomic stability.  

- The rating agency noted that further upgrades could be possible if India continues its reform momentum and reduces its public debt-to-GDP ratio.  

 

Sources: Economic Times, Tribune India, MSN India, Times of India, Rediff Money.