Context

In an analysis of the World Bank’s World Governance Indicators, a key input for India’s sovereign ratings,  a presentation by the Ministry of Finance’s Economic Division found that India’s scores were “much below” its peers on all counts. 

About

About World Bank’s World Governance Indicators:

• The World Bank’s World Governance Indicators provide a ranking of 215 countries territories based on six dimensions of governance:
• Voice and Accountability;
• Political Stability and Absence of Violence;
• Government Effectiveness;
• Regulatory Quality;
• Rule of Law and
• Control of Corruption.
• These aggregate indicators combine the views of a large number of enterprise, citizen and expert survey respondents in industrial and developing countries. 
• India’s WGI score:It is much below the BBB Median on all six indicators.
• While BBB is an investment-grade rating issued by global rating agencies such as S&P and Fitch.
• A WGI score below BBB Median would suggest that India falls below the middle when the scores of countries are arranged in a descending order.
• WGI play a key role in deciding sovereign credit rating of any country. India is losing its sovereign credit rating due to low score in WGI parameters.