Page 115 - ES 2020-21_Volume-1-2 [28-01-21]
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98 Economic Survey 2020-21 Volume 1
the Business Extent of Disclosure Index and has been a negative outlier throughout the period
2005-20.
Figure 23: Sovereign Credit Figure 24: Sovereign Credit Ratings
Ratings and Political Stability and Government Effectiveness
7 7
6 5 6 5
Average rating (1=BBB−/Baa3 to 6=A+/A1) Ordinal scale 4 3 Average rating (1=BBB−/Baa3 to 6=A+/A1) Ordinal scale 4 3
2
2015 2020 2 1 2010 2015 2020
1
2010 2005 2005
0
2000
0
2000
−2 −1 0 1 0 1
Political Stability Index Government Effectiveness Index
Source: Bloomberg, Datastream and World Bank Source: Bloomberg, Datastream and World Bank
Note: Red shows India's rating during 2000-20 Note: Red shows India's rating during 2000-20
3.25 Figure 23 shows that within its sovereign credit ratings cohort, India has consistently been
a negative outlier, rated below expectation for its level of political stability during the period
2000-20.
3.26 During 2000-20, India has consistently been rated below expectation for its level of
government effectiveness within its sovereign credit ratings cohort and has been a negative
outlier (Figure 24).
3.27 Figure 25 shows that within its sovereign credit ratings cohort, India has consistently been
a negative outlier, rated much below expectation for its level of rule of law during the period
2000-20.
Figure 25: Sovereign Credit Figure 26: Sovereign Credit Ratings
Ratings and Rule of Law and Control of Corruption
7 7
6 5 6 5
Average rating (1=BBB−/Baa3 to 6=A+/A1) Ordinal scale 4 3 Average rating (1=BBB−/Baa3 to 6=A+/A1) Ordinal scale 4 3
1 2 2015 2020 2 1 2010 2020
2010 2015
2005 2005
0 0
2000 2000
−1 0 1 −1 0 1
Rule of Law Index Control of Corruption Index
Source: Bloomberg, Datastream and World Bank Source: Bloomberg, Datastream and World Bank
Note: Red shows India's rating during 2000-20 Note: Red shows India's rating during 2000-20
