Current Affairs - Economy - Discussion

On May 9, 2025, Morningstar DBRS upgraded India’s sovereign credit rating from ‘BBB (low)’ to ‘BBB’, reflecting a stable outlook. This upgrade highlights India’s progress in key economic areas such as fiscal consolidation, structural reforms, and macroeconomic stability. The agency cited consistent GDP growth, a declining debt-to-GDP ratio, low inflation, stable exchange rates, and improvements in the banking sector, including high capital adequacy and low non-performing assets, as core drivers for the revision. The enhanced rating indicates stronger global confidence in India’s economic trajectory and positions the country more favourably in international investment circles.