Since 2013, India’s index has gone up to 5.3 per cent compared to say, that of 0.7 per cent of China and 0.4 per cent for many other EMDEs which are in the “BBB” category of rating. In Global Competitiveness Index, India has also moved up 16 places from 71 to 55 in 2015.
The macro-prudential perspective would focus on the overall performance of the portfolio; the micro-prudential vision would give equal and separate weight to the performance of each of its constituent securities. Compare, for instance, the solvency standard that might be appropriate from a macro-prudential perspective with that which would be consistent with the micro-prudential objective I have sketched.