I was reading this nice informative article. which explains why Indian currency bonds are 7 notches below the Chinese Bonds and share its ranking with bonds issued by bankrupt states like Jamaica and Armenia.
1) Government Fiscal Deficit (6.2% of the GDP)
2) Public debt (which accounts for almost 77% of the country’s GDP and almost all the taxes Indian government collects goes in servicing the debt’s interest rates)
3) Deficit of Power and basic infrastructure without which no industry can be expected to perform well and this deficit is robbing the country from atleast 2-3% growth of GDP.