The S&P recently put India on the watchlist for a ratings revision downwards from its current investment grade. Without debating the merits of the downgrade, there is a troubling trend from this, especially when comparing our ratings trend to that of other emerging economies.
The graphic below, a composite measure of the ratings of all the three major rating agencies, shows that India moved up to investment grade rating in January 2007. However, unlike all its other partners, in a fairly accurate reflection of the political paralysis that has gripped the country, it has remained there for the past more than five years.
The graphic below, a composite measure of the ratings of all the three major rating agencies, shows that India moved up to investment grade rating in January 2007. However, unlike all its other partners, in a fairly accurate reflection of the political paralysis that has gripped the country, it has remained there for the past more than five years.
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