Overview

• Rating and Investment Information raised India’s long-term sovereign rating to BBB+ from BBB and kept the outlook Stable, the latest in a series of 2025 upgrades.
• R&I pointed to robust domestic demand, a supportive demographic profile and policy reforms, noting fiscal deficit reduction via buoyant tax receipts and subsidy rationalisation.
• External resilience was highlighted through a modest current account deficit, steady services and remittance surpluses, low external debt-to-GDP and adequate foreign exchange reserves.
• The agency acknowledged risks from recent U.S. tariff increases and GST rationalisation effects but said India’s limited export reliance on the U.S. and domestic-demand-led growth should contain the impact.
• R&I affirmed the foreign-currency short-term rating at a-2 and referenced solid growth prints—6.5% in FY2024 and 7.8% in April–June 2025—with the RBI projecting 6.5% growth for FY2025.