Punjab Outlook

India has just scored a rare hat-trick. In May, Morningstar DBRS upgraded our rating. In August, S&P Global did the same. And now in September, Japan’s R&I has followed. All three have raised India’s sovereign credit rating with a “stable” outlook. This is a vote of confidence in India’s economic fundamentals at a time when many expected gloom.

The upgrades are not a gift. They reflect real progress. Our economy continues to grow faster than most large economies. Domestic demand is strong, which makes debt more sustainable. Inflation has been kept within a reasonable band and the Reserve Bank has earned credibility. The government is showing fiscal discipline, even while pushing big infrastructure projects. Digital reforms, GST improvements, and a healthier banking sector have also played a role.

But let us not fool ourselves. These upgrades have come despite two big weaknesses. First, the internal political environment. Our democracy and institutions are under constant attack from narratives designed to weaken trust and create divisions. The global world sees this, and India’s reputation suffers. That these upgrades happened anyway shows how strong the economic base is.

Second, agriculture remains a laggard. It is trapped by politics and the absence of real reforms. Farmers are still dependent on outdated procurement systems, free power, and subsidies that cannot last forever. Imagine the boost if agriculture were liberalized with better markets, private investment, technology, and exports. Agriculture has the potential to double incomes, generate rural jobs, and add a whole new engine to India’s growth story.

The real message from these upgrades is clear: the world trusts India’s economy but not its politics. Unless we free agriculture from outdated shackles and defend our democratic institutions from political assaults, the glow of these upgrades will fade. Ratings can rise on numbers, but long-term strength depends on both economic reform and political credibility.