In an analysis of the World Bank’s World Governance Indicators (WGI), a presentation was made by the Ministry of Finance’s Economic Division. The presentation found that India’s scores were much below its peers on all counts.



  • The Finance Ministry’s economic division was drafting a strategy to counter the negative commentary on India by global think-tanks, indices and media.
      • The government is worried that the negative commentaries could lead to downgrading of sovereign rating to junk.
      • A sovereign credit rating is an independent assessment of the creditworthiness of a country or sovereign entity.
  • It can give investors insights into the level of risk associated with investing in the debt of a particular country, including any political risk.
  • Earlier, in June 2020, then Principal Economic Advisor in the Ministry of Finance, Sanjeev Sanyal, prepared a presentation for internal circulation within the government.
      • The presentation was titled as “Subjective Factors that impact India’s Sovereign Ratings: What can we do about it?”.


About the World Banks’ World Governance Index

  • The World Bank’s WGI provide a ranking of 215 countries and 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.
  • They are based on over 30 individual data sources produced by a variety of survey institutes, think tanks, NGOs, international organisations, and private sector firms.