Global credit rating agency Morningstar DBRS has upgraded India’s Long-Term Foreign and Local Currency Issuer Ratings from 'BBB (low)' to 'BBB' with a Stable trend. Short-Term Foreign and Local Currency Issuer Ratings were also raised to R-2 (high) from R-2 (middle).

The upgrade reflects India’s strong structural reforms, including robust infrastructure investment, rapid digitalisation, and fiscal consolidation, which have driven an average GDP growth of 8.2% during FY22–25, alongside macroeconomic stability. A resilient, well-capitalised banking system with low non-performing loans also contributed to the improved rating.

Morningstar DBRS noted that further upgrades are possible if India continues implementing reforms to boost investment and reduce its public debt-to-GDP ratio. The agency’s rating scale aligns with those of Fitch and S&P, using 'high' and 'low' instead of plus or minus suffixes.