Former 15th Finance Commission chairperson NK Singh has welcomed Japan Credit Rating Agency's decision to upgrade India's sovereign credit rating, calling it a magical moment for the country and praising the robustness of its new GDP methodology.
In a series of posts on X, Singh said the A-rating upgrade calls for celebration and applauded the methodology used for calculating India's gross domestic product. “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,” Singh said.
Defending the use of double deflation in the new GDP series, Singh said it was “embedded in scientific reasons” and represented a long-demanded methodological improvement.
Singh also pushed back against suggestions that changes in the GDP base year could artificially boost growth figures. He said base years are regularly changed worldwide to reflect evolving economic structures and realities, and “do not represent a downward revision made to make the current year's growth appear higher”. “Any such attribution reflects prejudice, bias and a lack of understanding,” he said.
Singh further argued that comparisons between the old and new GDP series should not be made mechanically, describing them as an apples-to-oranges comparison. He said the new series is more robust and aligned with the global System of National Accounts 2008 (SNA 2008) standards.
According to Singh, the new series uses the new Series of Output Producer Price Index (PPI) and more than 300 individual price deflators, providing greater granularity to GDP estimates.
His comments came after JCR upgraded India's long-term foreign currency and local currency issuer ratings by one notch to A- from BBB+, while maintaining a Stable Outlook. The agency also raised India's country ceiling to A, according to the government.
The upgrade reflects India's strong and resilient economic growth, improving fiscal quality, a stronger financial system and a robust external position, the government said in a statement issued by the Press Information Bureau on Wednesday.
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JCR noted that India's real GDP growth remained strong at 7.8% in FY26, with growth continuing at 7.8% in the first quarter of FY27 despite global headwinds. The agency attributed the momentum to robust private consumption and public investment.
The rating agency also highlighted the government's economic policies, including digital public infrastructure and the implementation of the Goods and Services Tax, as factors that have strengthened the foundations for growth.
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