Skip to main content

Modi's India No 1 in world in ensuring foreign investors take profits back home, amass wealth: US survey

Daniel Altman
By Our Representative
In a clear effort to provide boost to Prime Minister Narendra Modi, a top US journal has called India as the most important investment destination in the world. The latest rating provided by the high-profile Foreign Policy magazine, which is owned by the FP Group, a division of Graham Holdings Company, formerly the Washington Post Company, has “the big story in the Baseline Profitability Index (BPI) this year is India. coming out on top.”
Seeking to provide full marks to India, the report says, the country's “growth forecasts are up, perceptions of corruption down, and investors better protected following the election of a government led by Prime Minister Narendra Modi.” The ultimate aim of the report is show which country can ensure the investors are able to get returns to their profits back to their “pockets”.
A one-man job, the report has been prepared by Daniel Altman, who is senior editor, economics at the “Foreign Policy” magazine, and is an adjunct professor at New York University's Stern School of Business.
The high-profile report finds India's BPI at 1.32, placing it at No 1, followed by Quatar at No 2 with a BPI of 1..28, Botswana at No 3 with a BPI 1.27, Singapore at No 4 with a BPI of 1.22, and Ghana at No 5 with a BPI of 1.21. The United States, the report says, has a BPI of 1.01 with a ranking of No 50, the United Kingdom a BPI of 1.00 with a ranking of No 64, China a BPI of 0.99 with a ranking of No 65, and Japan a BPI of 0.98 with a ranking of No 74.
Upbeat, Amitabh Kant, secretary, Department of Industrial Policy and Promotion (DIPP), Government of India, forming part of the Modi team visiting the US, has tweeted, “India is attracting #FDI like never before. 1 year of #MakeInIndia”, adding, “As the lion turns 1 today, we take a look at some of the notable investments since #MakeInIndia's launch!”
The report says, India was placed No 6 in 2014, again way ahead of the US which was on the 26th position, United Kingdom 7th position, China at 50th position and Japan at 60th position.
Pointing towards the methodology, the report says, there are three which will affect the ultimate success of foreign investment: “How much an asset's value grows, the preservation of that value while the asset is owned, and the ease of bringing home the proceeds from selling the asset.”
The report adds, “Each of these groups of factors requires a different kind of assessment. It's not enough to worry only about rates of return, corruption, political stability, investor protection, or exchange rates alone. The BPI combines these factors into a summary statistic that conveys a country's basic attractiveness for investment.”
Wondering “Where exactly should they put their money”, the report says, “Modi’s India is the place to start”, adding, “It’s a great time to be an international investor. Most countries crippled by the global financial crisis now have their banking systems and fiscal balances under control, and demand for goods and services is returning almost everywhere. And with more economies than ever integrated into global markets, investors have their pick of destinations.”
The report says that India is “up”, and America is “down”, with Venezuela being at the “the rear”. Pointing out that there is a need for investors to “worry about things like financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates”, it tells top investors, “These factors together gives a better idea of how big the return will be when it finally reaches your pocket.”

Comments

TRENDING

Whistle-blowing IPS officer Sanjiv Bhatt's wife suspects foul play after truck hits her car

By Nachiketa Desai*
Paranoia has seized Shweta Bhatt, wife of suspended Indian Police Service (IPS) officer Sanjiv Bhatt, after the car she was driving was rammed in broad day light. According to Shweta Bhatt, it was beacon light-flashing truck without registration number plate. The incident took place on January 7, just a day ahead of the Gujarat High Court was scheduled to take up the bail application of Sanjiv Bhatt, arrested last year for "involvement" in a 23-year-old case.

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

99% MGNREGA funds "exhausted", Govt of India makes no additional sanctions: Study

Counterview Desk
A letter, addressed to Prime Minister Narendra Modi, and prepared by senior activists led by Aruna Roy on behalf of the Peoples’ Action for Employment Guarantee (PAEG), and signed, among others, by 80 members of Parliament, has regretted that, despite repeated public statements by his government promising employment and job creation that will boost the country’s growth, the country’s only employment guarantee programme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), “is being systematically undermined.”

Morari Bapu, who has installed new statues of Ram, Laxman, Hanuman without weapons

By Sandeep Pandey*
A saint is one who can give some inner peace by his/her voice. This will happen only when s(he) will talk about love and harmony. Morari Bapu is one saint who has been conveying the message of love, peace, harmony, fraternity, etc. Today when a number of saffron clad figures with aggressive posture, spewing venom, fanning hatred to polarise voters are at the forefront of politics of Hindutva it is a relief to see Morari Bapu in a different mould.

Nuclear reactors sought from French giant "not safe": Letter to Modi on Jaitapur project

Counterview Desk
Amidst reports that the French nuclear giant EDF has submitted a “techno-commercial offer” for the world’s largest nuclear power park proposed in Maharashtra’s Jaitapur nuclear power park in Jaitapur on the Maharashtra coast, Dr EAS Sarma, India’s former Union Secretary in the Minister of Power, and an eminent voice in the civil society, has written an open letter to Prime Minister Narendra Modi, who also heads Department of Atomic Energy (DAE),  protesting the move.

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Kerala land being acquired using "draconian, anti-people" National Highway Act, 1956

Counterview Desk
In a letter Chief Minister of Kerala Pinarayi Vijayan, senior activists and politicians have insisted that the Kerala government should not agree to "inhuman displacement and buid-operate-transfer (BOT) Toll system", imposed by the Government of India and the National Highway Authority of India, for widening the current National Highway (NH) 66.

Kaiga NPP expansion: Karnataka to get just 400 MW, but lose thick forest, fresh water

Counterview Desk
In an open letter to the chairman and members of the Atomic energy Commission (AEC) on the issue of Kaiga nuclear power plant (NPP) expansion plan in Karnataka, Shankar Sharma, well-known power policy analyst, has argued that that in case of expansion, the site will face “exponential increase in radiation emission risks”, underlining, “Nuclear safety experts identify such a scenario as enhanced risk for NPPs with multiple reactors and shared technical facilities."
Sharma says the questions that also be asked whether Karnataka should lose more than 54 hectares of thick forests and about 152,304 cubic meters of fresh water per day from Kali river for a meager benefit of 400 MW from the Kaiga NPP, for which “there are many benign alternative options available for the state at much lower overall costs to the state.”
Text of the letter: This has reference to the public hearing under the Environmental Impact Assessment (EIA) Rule 2006 of Ministry of Environment, Fore…

Uttarakhand High Court: Biodiversity boards can impose fees on Ramdev's Divya Pharmacy

By Mridhu Tandon
In a significant decision, the Uttarakhand High Court on December 21, 2018 has dismissed the writ petition filed by Divya Pharmacy founded by Baba Ramdev and Acharya Balakrishnan, challenging the demand of the Uttarakhand Biodiversity Board (UBB) imposing fees under the provisions of the Fair and Equitable Benefit Sharing (FEBS).

Modi becoming Prime Minister now appears to be an "accident" to the people of India

By Sandeep Pandey*
Anupam Kher's film 'Accidental Prime Minister' has targeted Dr Manmohan Singh who served for two terms and may be again acceptable for the job if his party regains power. But his tormentor Narendra Modi seems to be out of breath even before his first term is over. Disillusionment with him is so widespread and deep that people of India may not bear with him for another term. As the general elections approach again the difference between the two needs to be examined.