India's FDI Confidence ranking drops by 4 points in a year, from 7th to 11th position: Consultants AT Kearney

By Rajiv Shah
Top international consultants AT Kearney have noted that, despite Prime Minister Narendra Modi’s Make in India drive, India has dropped from the top 10 positions in foreign direct investment (FDI) confidence index for the first time since 2002. In a just-released report, “Connected Risks: Investing in a Divergent World”, the consultants’ rankings show that India in 2015 ranks No 11th, down from the seventh position in 2014.
All this has happened at a time when “the country's Make in India initiative, launched in September 2014, aims to improve the ease of doing business in India, and remove or relax foreign equity caps in several areas”, the report says. The report also notes this development when the Government of India’s “revised estimates” suggested the country’s gross domestic product (GDP) grew “faster than China’s last year”, and its consumer market remained “significant, sparking broad investor interest.”

The report notes that India’s FDI confidence index ranking was No 2 in 2007, when what then seemed to be an unstable Congress-led coalition at the Centre ruled the country. The ranking remained high over the years when the coalition was in power – No 3 in 2010, No 2 in 2012, No 5 in 2013, and No 7 in 2014, when the UPA government was thrown out of power by a sweeping win by Modi-led BJP.

Despite India “overtaking” China in GDP growth, the report notes that the country remains No 2 of the 25 top FDI Confidence index ranking. It says, “Business executives are carefully watching China for economic growth of around 7 percent, and for signs of a successful transition to a consumption-led economy.”

The report adds, “If those indicators emerge, most executives say their companies would increase investment activity into China. Overall, countries in Asia Pacific have a mixed showing in the Index, with Japan rising to 7th (from 19th last year), and South Korea reentering the Index at 16th after going unranked last year. Australia (10th), India (11th), and Singapore (15th) fall in the rankings but maintain top 20 positions.”
Interestingly, India’s ranking has petered despite the fact that only 12 per cent of business executives – one of the lowest among the top 25 countries – felt negative about India’s FDI confidence level. On the other hand as many as 28 per cent of executives felt positive about India, which was lower than only four other countries – US (46 per cent), Canada (35 per cent), Germany (33 per cent), and China (31 per cent).

Responses from business executives

The FDI Confidence Index, established by AT Kearney in 1998, claims to examine the “overarching trends in FDI”, ranking the top 25 countries. About its methodology, the report says, it is a “forward-looking analysis of how political, economic, and regulatory changes will likely affect countries' FDI inflows in the coming years”, adding, “Over its 17-year history, there has been a strong correlation between the rankings and global FDI flows.”

Comments

70,000 migrants, sold on Canadian dream, face uncertain future: Canada reinvents the xenophobic wheel

By Saurav Sarkar* Bikram Singh is running out of time on his post-study work visa in Canada. Singh is one of about 70,000 migrants who were sold on the Canadian dream of eventually making the country their home but now face an uncertain future with their work permits set to expire by December 2024. They came from places like India, China, and the Philippines, and sold their land and belongings in their home countries, took out loans, or made other enormous commitments to get themselves to Canada.

Kerala government data implicates the Covid vaccines for excess deaths

By Bhaskaran Raman* On 03 Dec 2024, Mr Unnikrishnan of the Indian Express had written an article titled: “Kerala govt data busts vaccine death myth; no rise in mortality post-Covid”. It claims “no significant change in the death rate in the 35-44 age group between 2019 and 2023”. However, the claim is obviously wrong, even to a casual observer, as per the same data which the article presents, as explained below.

PM-JUGA: Support to states and gram sabhas for the FRA implementation and preparation and execution of CFR management plan

By Dr. Manohar Chauhan* (Over the period, under 275(1), Ministry of Tribal Affairs has provided fund to the states for FRA implementation. Besides, some states like Odisha, Chhattisgarh and Maharashtra allocated special fund for FRA implementation. Now PM-JUDA under “Dharti Aaba Janjatiya Gram Utkarsh Abhiyan(DAJGUA) lunched by Prime Minister on 2nd October 2024 will not only be the major source of funding from MoTA to the States/UTs, but also will be the major support to the Gram sabha for the preparation and execution of CFR management Plan).

Operation Kagar represents Indian state's intensified attempt to extinguish Maoism: Resistance continues

By Harsh Thakor Operation Kagar represents the Indian state's intensified attempt to extinguish Maoism, which claims to embody the struggles and aspirations of Adivasis. Criminalized by the state, the Maoists have been portrayed as a threat, with Operation Kagar deploying strategies that jeopardize their activities. This operation weaves together economic, cultural, and political motives, allegedly with drone attacks on Adivasi homes.

How Amit Shah's statement on Ambedkar reflects frustration of those uncomfortable with Dalit assertion, empowerment

By Vidya Bhushan Rawat* Dr. B.R. Ambedkar remains the liberator and emancipator of India’s oppressed communities. However, attempts to box him between two Brahmanical political parties betray a superficial and self-serving understanding of his legacy. The statement by Union Home Minister Amit Shah in the Rajya Sabha was highly objectionable, reflecting the frustration of those uncomfortable with Dalit assertion and empowerment.

This book delves deep into Maoism's historical, social, and political dimensions in India

By Harsh Thakor* "Storming the Gates of Heaven" by Amit Bhattacharya is a comprehensive study of the Indian Maoist movement. Bhattacharya examines the movement's evolution, drawing from numerous sources and showcasing his unwavering support for Charu Mazumdar's path and practice. The book, published in 2016, delves deeply into the movement's historical, social, and political dimensions.

Ideological assault on dargah of Sufi Saint Khwaja Moinuddin Chishti will disturb pluralistic legacy: Modi told

Counterview Desk Letter to the Prime Minister about "a matter of the utmost concern affecting our country's social fabric": *** We are a group of independent citizens who over the past few years have made efforts to improve the deteriorating communal relations in the country. It is abundantly clear that over the last decade relations between communities, particularly Hindus and Muslims, and to an extent Christians are extremely strained leaving these latter two communities in extreme anxiety and insecurity.

Defeat of martial law: Has the decisive moment for change come in South Korea?

By Steven Lee Late at night on December 3, soldiers stormed into South Korea’s National Assembly in armored vehicles and combat helicopters. Assembly staff desperately blocked their assault with fire extinguishers and barricades. South Korea’s President Yoon Suk Yeol had just declared martial law to “ eliminate ‘anti-state’ forces .”

Search This Blog