What we must focus on for India to get a sovereign rating upgrade
Photo: BloombergPremium
Deep Mukherjee
Our risk of a downgrade in the next 12 months is negligible but we must improve on qualitative factors within our control
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India’s handling of its sovereign-rating issues over the past two decades may be described as reactive and restrictive. Much commentary by stakeholders tends to appear around events that entail a perceived threat of a downgrade or a moonshot at an upgrade. The debate so far has largely been focused on a narrow set of rating drivers, such as India’s low external debt, high growth rate, fiscal deficit and some irrelevant factors like the size of India’s economy. The cohesive government effort that saw India improve its rank on Ease of Doing Business (EODB) charts is missing when it comes to its sovereign rating. The starting point for that should be a more nuanced understanding, by all stakeholders, of the what and hows of th
Ease of Doing Business: Twelve states have been granted additional borrowing permission
Ease of Doing Business: Four more states have undertaken the stipulated reforms under ease of doing business, allowing them to avail additional financial borrowings worth Rs 5,034 crore, said the Ministry of Finance in a statement on Saturday, February 6. This has taken the total number of states that have completed the ease of doing business reforms to 12, with the government allowing for additional borrowing permission of Rs 28,183 crore, so far. The four states which have recently completed the reforms are Assam, Haryana, Himachal Pradesh, and Punjab. (
According to an official statement by the Finance Ministry, Assam, Haryana, Punjab, and Himachal Pradesh completed reforms stipulated by the Department of Expenditure, and have become eligible to mobilise additional financial resources and have been granted permission to raise additional Rs 5,034 crore through open market borrowings. As