Technical Appendix

Statistical Methods, Robustness Tests, and Detailed Results
India Political Economy Assessment 2014-2025

Contents

A1. Index Construction Methodology

General Principles

All indices follow a standardized construction methodology:

Index_t = Σ(w_i × normalize(X_it)) / Σw_i where: X_it = Raw value of component i at time t w_i = Weight assigned to component i normalize() = Min-max normalization to [0,1]

Normalization Formula

normalize(X) = (X - X_min) / (X_max - X_min) For reverse indicators: normalize_reverse(X) = 1 - normalize(X)

A2. Statistical Suppression Index (SSI) Details

Component Weights and Graded Severity

SSI is a 0-10 weighted sum of graded suppression severities: SSIt = Σ(weighti × severityit), severity ∈ [0,1] (1.0 = full suppression / discontinuation, ~0.7 = methodology dispute, ~0.3 = delay or post-resolution scar). Six documented streams; weights sum to 10. The UPA years (2004-2013, shaded) record nothing, so SSI = 0. Both eras are computed identically in data/compute_indices.py. Cell values are the annual severity; published third-party data is not involved — these are author-coded severities anchored to datable events (see notes).

Year Census (2.5) Consumption (1.5) Employment (1.0) GDP back-series (1.5) Institutional (1.5) Mortality undercount (2.0) SSI Score
20040000000.00
20050000000.00
20060000000.00
20070000000.00
20080000000.00
20090000000.00
20100000000.00
20110000000.00
20120000000.00
20130000000.00
20140000000.00
2015000.70001.05
2016000.70001.05
2017001.70002.05
20180111004.00
201901.301104.80
20201101107.00
20211101119.00
20221101119.00
202311011.608.20
20241.50011.407.05
20251.30011.306.55
20261.20011.306.40
Key Finding: SSI was 0 across the UPA decade, then climbed to a peak of 9.0 in 2021-2022 — the COVID-mortality undercount (official ~0.5M deaths vs 3-5M excess) stacking on top of the census delay, the withheld consumption survey, the shelved GDP back-series and the permanent NSSO→NSO merger. It remains elevated at 6.4 in 2026: the acute events eased, but the institutional damage (merger, unresolved back-series) is permanent and the data scars persist.

A3. Fiscal Centralisation Index (FCI) Components

Detailed Component Calculation

FCI_t = (1/6) × [C1_t + C2_t + C3_t + C4_t + C5_t + C6_t] Where: C1_t = minmax(Cess_Share_t) C2_t = 1 - minmax(Devolution_t) C3_t = 1 - minmax(States_Own_Revenue_t) C4_t = minmax(CSS_Share_t) C5_t = Borrowing_Restrictions_t ∈ {0, 0.5, 1} C6_t = GST_Centralisation_t ∈ [0,1] (0 pre-2017; full once GST compensation ended mid-2022)
Year Cess/Surcharge % Devolution % States' Own Rev % CSS Share % Borrowing GST FCI Score
20046.536.545.022.00.00.000.00
20057.036.344.822.80.00.000.03
20067.536.144.523.50.00.000.05
20078.035.944.224.20.00.000.07
20088.535.844.024.80.00.000.09
20099.035.743.725.40.00.000.11
20109.335.643.426.00.00.000.12
20119.635.543.126.60.00.000.14
20129.935.442.927.20.00.000.16
201310.135.342.727.70.00.000.17
201410.435.042.528.30.00.000.19
201511.535.641.829.50.00.000.21
201613.536.240.231.20.00.000.25
201715.336.638.533.80.00.600.41
201817.835.537.236.50.00.700.53
201919.034.036.138.90.00.800.65
202020.233.034.542.31.00.850.92
202118.332.735.241.50.50.900.82
202216.332.436.840.20.01.000.70
202314.832.137.539.80.01.000.68
202414.831.837.939.50.01.000.68
202514.631.638.039.20.01.000.68
202614.531.438.139.00.01.000.68
Note: Six components, each min-max normalised over the full 2004-2026 sample, so FCI is relative: 0.00 = least-centralised year (2004), ~0.92 = most (2020). UPA average 0.09 vs 0.57 under NDA. The new GST component captures the structural loss of independent state taxation in 2017 (cesses and CSS are symptoms; GST is the regime shift), phasing to full weight once GST compensation ended in June 2022. NDA component values (2014-2024) are budget / Finance-Commission anchors; UPA values interpolate official anchors (12th-15th FC devolution; Receipt-Budget cess and CSS shares).

A4. Democratic Quality Index (DQI) Calculations

Four-Component Geometric Mean

DQI_t = (V_t × F_t × R_t × C_t)^(1/4) Where: V_t = V-Dem Liberal Democracy Index (0-1) F_t = Freedom House aggregate score / 100 R_t = (180 - RSF_rank_t) / 180 C_t = V-Dem Core Civil Society Index (0-1)

All four are published third-party measures. The Civil Society Index is added because press-freedom rank barely separates the eras (India was mediocre throughout), whereas civil-society space collapsed from ~0.87 to ~0.31 under NDA — the dimension a headline democracy score flattens. (V-Dem also reclassified India from electoral democracy to electoral autocracy in 2019.)

Year V-Dem LDI Freedom House RSF Rank Civil Society DQI Score
20040.55378/100120/1800.860.59
20050.56078/100106/1800.860.63
20060.56278/100105/1800.860.63
20070.56778/100120/1800.870.60
20080.56678/100118/1800.870.60
20090.56779/100105/1800.880.64
20100.56679/100122/1800.880.60
20110.56079/100131/1800.870.57
20120.55779/100140/1800.870.54
20130.55478/100140/1800.870.54
20140.55578/100140/1800.870.54
20150.52977/100136/1800.830.54
20160.50177/100133/1800.780.53
20170.46277/100136/1800.700.50
20180.42275/100138/1800.620.46
20190.38971/100140/1800.550.43
20200.36567/100142/1800.480.40
20210.35766/100142/1800.420.38
20220.29066/100150/1800.360.33
20230.27566/100161/1800.330.28
20240.27166/100159/1800.320.29
20250.27066/100151/1800.320.31
20260.27066/100157/1800.310.29
Key Finding: DQI fell from a UPA-era average of ~0.59 (peak 0.64) to 0.29 by 2026 — with the steepest drop after 2019, the year V-Dem reclassified India as an electoral autocracy. The geometric mean is now pulled hardest by the collapse in civil-society space (0.87 → 0.31), not just press freedom.

A5. Employment Elasticity Estimation

Methodology

Employment Elasticity = (%ΔEmployment) / (%ΔGDP) Log-linear specification: ln(E_t) = α + β×ln(Y_t) + γ×X_t + ε_t Where: E_t = Employment at time t Y_t = Real GDP at time t X_t = Control variables β = Employment elasticity
Period GDP Growth % Employment Growth % Elasticity 95% CI
2004-2009 8.4 0.8 0.10 [0.08, 0.12] 0.72
2009-2011 8.5 0.4 0.05 [0.02, 0.08] 0.65
2011-2016 6.7 0.1 0.01 [-0.02, 0.04] 0.58
2016-2020 5.2 -1.2 -0.23 [-0.28, -0.18] 0.81
2020-2023 7.8 8.6 1.11 [0.95, 1.27] 0.69
Note: The 2020-2023 elasticity of 1.11 reflects distress employment in informal sector post-pandemic, not quality job creation.

A6. Inequality Measurement Methods

Income Share Calculation

Top 1% Share = Σ(Y_i) / Y_total for i ∈ top percentile Gini Coefficient = (1/2n²μ) × ΣΣ|y_i - y_j| Palma Ratio = Income share of top 10% / Income share of bottom 40%
Year Top 1% Top 10% Middle 40% Bottom 50% Gini Palma
2014 15.0% 52.9% 32.1% 15.0% 0.812 3.5
2015 16.2% 54.1% 31.5% 14.4% 0.821 3.8
2016 17.5% 55.3% 30.9% 13.8% 0.830 4.0
2017 18.9% 56.4% 30.3% 13.3% 0.838 4.2
2018 19.8% 57.1% 29.9% 13.0% 0.843 4.4
2019 20.6% 57.8% 29.5% 12.7% 0.847 4.6
2020 21.0% 58.2% 29.3% 12.5% 0.850 4.7
2021 21.7% 58.9% 28.9% 12.2% 0.854 4.8
2022 22.2% 59.4% 28.6% 12.0% 0.857 5.0
2023 22.6% 59.8% 28.4% 11.8% 0.860 5.1

A7. Robustness Tests

Sensitivity Analysis Results

Test Base Result Alternative Specification Difference Significant?
SSI with ±20% weights 7.05 (2024) 5.6-8.5 ±20% No
FCI excluding borrowing 0.68 (2024) 0.81 +19% No
DQI arithmetic mean 0.29 (2024) 0.34 +17% Yes*
Employment elasticity (quarterly) 0.01 0.03 +200% No
Inequality (CMIE vs WID) 22.6% 21.8% -3.5% No
*Note: Geometric mean penalizes weak dimensions more heavily, making DQI more sensitive to democratic erosion.

A8. Complete Results Tables

Master Results Table 2014-2024

Year GDP Growth Unemployment Top 1% SSI FCI DQI Press Rank Devolution
2014 7.4% 4.9% 21.3% 0.00 0.19 0.54 140 35.0%
2015 8.0% 5.0% 21.7% 1.05 0.21 0.54 136 35.6%
2016 8.2% 5.0% 21.5% 1.05 0.25 0.53 133 36.2%
2017 7.2% 6.0% 21.5% 2.05 0.41 0.50 136 36.6%
2018 6.1% 6.1% 21.7% 4.00 0.53 0.46 138 35.5%
2019 4.2% 5.8% 22.1% 4.80 0.65 0.43 140 34.0%
2020 -7.3% 7.1% 22.3% 7.00 0.92 0.40 142 33.0%
2021 8.7% 4.2% 22.5% 9.00 0.82 0.38 142 32.7%
2022 7.2% 4.1% 22.6% 9.00 0.70 0.33 150 32.4%
2023 7.6% 3.2% 22.6% 8.20 0.68 0.28 161 32.1%
2024 7.8% 3.2% 22.6% 7.05 0.68 0.29 159 31.8%

Summary Statistics

Technical Appendix | India Political Economy Assessment 2014-2025
Complete data and code: github.com/someperspective/india-economy
May 2026