India's credit rating upgraded to BBB+: what it means for the economy and people

-


  CBS LINE

Volume 3.9 

On September 19,2025, Japan’s largest rating agency Rating and Investment Information (R&I) upgraded India’s rating to BBB+, marking the country’s third sovereign rating upgrade in 2025. The upgrade reflects India’s strong domestic demand, fiscal discipline and improved external stability. This upgrade is not just a technical one it has meaningful implications for the economy and citizens alike.

The higher credit rating means India is now seen as a safer and more reliable borrower on the global stage. This allows the government to raise funds at lower interest rates, and can invest more on development projects like infrastructure, healthcare and education. It also encourages foreign investments, bringing capital into Indian market that strengthens the value of rupee and supports the financial market. Banks and corporates also benefit, as their international borrowing becomes cheaper which enables expansion and innovation.

Citizens may not feel the change immediately, but the benefits are real. Cheaper government and corporate borrowings will transform to better public services, more job opportunities, and improved infrastructure. Increased foreign investment can stimulate new industries and career opportunities and improving overall standard of living. A stable economy and currency also help protect savings, investments and reducing inflationary pressures which will eventually improves financial security.

In essence, R&I’s upgrade of India to BBB+ is both a reflection of past achievements and a driving factor for future opportunities. For the economy, it means reduced borrowing costs and increased investment and for people, it offers opportunities, stability and more secure future. The upgrade reflects the international nation’s confidence on Indian economy and it is a global endorsement of India’s growth story, emphasising that continued reforms and proper economic management can improve the country’s place on global stage. With continued growth policies, India can take advantage of this opportunity to attract further investments and can create long-term opportunities for its people. 


Chandhana A A
MSc in Econometrics and Financial Technology

Comments

Post a Comment

Popular posts from this blog

Voices and Views

-
Image
     CBS LINE Volume 3.9  DR.D.MAVOOTHU Professor & Former Director, SMS CUSAT. Dean, Faculty of Social Sciences,CUSAT. Member of Syndicate, CUSAT. Member of Court Central University of Kerala, Kasargode 1)What does ‘business ethics’ mean in today’s world, and why it is important not just for big companies but also for ordinary people? We develop ethical principles and expand our understanding of ethics in much the same way we advance scientific knowledge—through experience, reflection, and continuous improvement. This evolving approach is known as pragmatic ethics. Over time, significant progress has been made in areas such as equal opportunity, responsible product and service practices, tax compliance, and adherence to prudential regulations. These advancements have led to positive outcomes, and I believe this progress will continue. Overall, I remain optimistic about the future of business ethics. 2)What ethical responsibilities do businesses and leaders have...
Read more

INTERVIEW WITH KERALA FINANCE MINISTER

-
Image
CBS LINE Volume 3(10) CBS Students Hold Exclusive Interview with Kerala’s Finance Minister At the Vision 2031 conference organized by the Department of Finance, Government of Kerala , students from the Centre for Budget Studies (CBS) had the opportunity to engage directly with Hon. Finance Minister Shri K.N. Balagopal in a special interview granted upon the request of the CBS delegation. The discussion focused on Kerala’s fiscal priorities and its long-term development vision.                                  CBS Students with  Hon. Finance Minister Shri K.N. Balagopal   The CBS students asked: “Given that the state has reached an advanced welfare stage, should the government focus more on revenue generation or on restructuring expenditure to ensure long-term fiscal stability?” In his response, Hon. Finance Minister Shri K.N. Balagopal remarked “In the current context, the government sho...
Read more

Monitoring GST Cuts: Role of the Anti-Profiteering Body

-
Image
  CBS LINE Volume 3.9  Anti-profiteering refers to regulatory provisions that ensure consumers benefit from tax rate cuts through proportional price reductions. With the upcoming revisions in Goods and Services Tax (GST) rates across various goods and services, the role of the Anti-Profiteering Committee becomes more crucial than ever. Established under the GST framework, the committee ensures that any reduction in tax rates or benefits of input tax credit is passed on to consumers in the form of commensurate price reductions. India has overhauled its GST structure, reducing the earlier four tax slabs (5%, 12%, 18%, 28%) into just two main rates—5% and 18% for most goods and services, while instituting a higher 40% rate for luxury items. Several essential and household items, including packaged food, daily essentials have seen their GST rates cut significantly, easing the burden on consumers. Several everyday food items will see a tax reduction from 18% to 5%.  As new GS...
Read more