N.K. Singh, the former chairman of India's 15th Finance Commission, has lauded Japan Credit Rating Agency's (JCR) decision to upgrade India's sovereign credit rating from BBB+ to A- with a stable outlook. Singh described the upgrade as a "magical moment" for the country, while also robustly defending India's revised Gross Domestic Product (GDP) methodology.
JCR elevated India's foreign and local-currency long-term issuer ratings by one notch, citing several key factors. These included strong economic growth, robust private consumption, significant public investment, effective policy implementation, and marked improvements within the financial system.
Reacting to the positive assessment, Singh stated, "The A-rating upgrade by the Japanese Credit Rating Agency is a magical moment for India and calls for celebration. We need to applaud the robustness of the new GDP methodology." He emphasized that "double deflation is embedded in scientific reasons, long-demanded as a methodological improvement."
Singh's comments come amid ongoing discussions about India's latest GDP figures, particularly after the nation recorded a 7.8% real GDP growth in the April-June quarter, surpassing many expectations. Addressing critics of the updated GDP series, Singh clarified that revisions to the base year constitute standard statistical practice globally. He argued that base years are regularly adjusted worldwide to accurately reflect evolving economic realities and structural changes, dismissing any suggestions that revisions are made to artificially inflate current year's growth figures as prejudiced and uninformed. Furthermore, he cautioned against mechanically comparing the old and new GDP series, likening it to an "apples-to-oranges" comparison. Singh asserted that the new GDP series is more robust, aligns with global SNA2008 standards, and utilizes the 'New Series of Output Producer Price Index (PPI)' with over 300 individual price deflators for greater granularity.
JCR's upgrade reinforces international recognition of India’s economic momentum. The agency noted that India's economy expanded by 7.7% in real terms in FY2026 and projects growth to remain above 6% in FY2027. Key factors strengthening India’s economic foundations, according to JCR, include its digital public infrastructure, the successful implementation of the Goods and Services Tax (GST), resilient consumption patterns, and sustained public investment.