There are three popular rating agencies in world today i.e. Fitch, Moody's and S&P. These rating agencies have consistently given a poor rating to India because
- Indian taxes are too high and complex.
- India law&order situation is weak. Justice is not delivered or often delivered late.
- Indian bureaucracy is big and corrupt. It is difficult to get work done on time in any government department, without paying bribes.
To improve its rating, India had to
- Reduce taxes
- Reduce bureaucracy, rules and regulations
- Privatize many government agencies like BSNL, MTNL, Railways, etc.
- Stream-line the justice delivery system.
- Disallow politicians/bureaucrats from interfering in the day to day running of any government owned business.
But instead of making the above changes to improve the life of Indians, the government wants to setup a new rating agency. Reference.
This is akin to a student, who keeps failing in exam. Instead of studying harder, he wants to change the teacher.
With an attitude like this the student (Indians) will not see any real improvement.
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