Friday 19 December 2014

India 93rd Best Business Destination: Forbes

India’s ranking in the Forbes’ list of the ‘Best Countries for Business’ dropped to 93 this year while Denmark topped the list followed by Hong Kong, New Zealand, Ireland and Sweden.

The US lags behind many other developed nations when it comes to its business climate, and the gap is growing, Forbes said. The US ranks 18th in the Forbes list, down four spots from last year.

It marks the fifth straight year of declines since 2009, when the US ranked second. India ranks 93rd, with Forbes saying that while the country is developing into an open-market economy, “traces of its past autarkic policies” still remain.

“The outlook for India’s long-term growth is moderately positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy,” it said.

Investors’ perceptions of India improved in early 2014, due to a reduction of the current account deficit and expectations of post-election economic reform, resulting in a surge of inbound capital flows and stabilization of the rupee, it said.

Forbes determined the ‘Best Countries for Business’ by grading 146 nations on 11 different factors of property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.

India ranked 122 on the trade freedom index, 135 in monetary freedom, 120 in technology, 122 in tax burden and 128 in red tape. It however fared well on the market performance index, ranking third, and 7th on investor protection. It ranked 78th on the corruption parameter and 55 on property rights.


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