India dropped two places to 12 in Eurasia Group’s latest ranking of 24 countries based on political risk. India’s score stayed at 63 in October with a neutral outlook, but the country was overtaken by Russia and China. “Higher growth and higher inflation will raise expectations of an interest rate hike,” said Eurasia Group of the outlook for India. The Reserve Bank of India signalled last month that it was reversing its loose monetary policy regime as it prepares to battle the threat of higher inflation. Hungary topped the list of 24 countries and Pakistan brought up the rear.

Also See Global Political Risk Index (Graphics)

The index is a composite measure of a country’s government, society, security and economy.

While the score indicates stability or instability for the month gone by (October, in this case), the outlook (positive, negative or neutral) signals which way the score will move.

Mint has partnered with Eurasia Group for the Global Political Risk Index (GPRI) and runs this every month. For previous editions of the index, go to Global Political Risk Index. Your reactions and comments are welcome at feedback@livemint.com

Graphics by Yogesh Kumar / Mint