Even as inflation soared and the ruling United Progressive Alliance government tried to work out ways to push ahead with the Indo-US civilian nuclear agreement without destabilizing the government (its key ally, the Left Front, which supports the government without being part of it, is opposed to it), India more or less retained its score in the Global Political Risk Index, or GPRI, for June. The country did move up a rank from 13 to 12, but this can be attributed to the fact that the outlook for many other countries remains as negative, if not more, than India’s.
The political uncertainty surrounding the Congress-led UPA government will likely continue in July, and inflation is likely to remain high. The Reserve of Bank of India raised a key interest rate twice in June and analysts and experts expect it to do so again.
Pakistan continues to bring up the bottom of the 24-country ranking compiled by Eurasia Group, the risk management firm behind the index. 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 (June, in this case), the outlook (positive, negative or neutral) indicates which way the scores will likely move.
Mint has partnered with Eurasia Group for GPRI and runs this every month. Mint carried the previous GPRI on 10 June.
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