India is the most difficult country to do business: Study
Updated: Mar 06, 2014 11:48:20am
New Delhi, Mar 6 (KNN) India is the most difficult country to do business due to social and political instability, regulatory and policy hurdles, aggressive tax regime, reversals in trade openness, sensitivity to intellectual property and economic slowdown, according to a study.
A report released by a marketing communication firm - SPAG Asia (Strategic Partners Group) says India is the most difficult country to do business, followed by Indonesia and the Philippines, while Thailand and Malaysia are two countries where it is easiest for foreign investors to do business.
The study cites corruption as a big problem and potential source of social and political instability in the near term.
It says external political risks are highest for India mainly due to security threats posed by Pakistan. China has been pegged at the second spot in terms of external risks, as it is encountering friction with many of its neighbours. This category listed 22 Asian nations.
Social instability risks are also highest in India and Indonesia, while they are lowest in Vietnam and China, the study revealed.
Insufficient efforts by the government and political leadership, regulatory and policy hurdles, aggressive tax regime, reversals in trade openness, sensitivity to intellectual property and economic slowdown have contributed to making foreign investors wary, it pointed out.
"As the second term of the Congress-led coalition government comes to an end in India, its record has disappointed business. Policy paralysis and slow decision making have resulted in a weak macroeconomic situation, with high fiscal and trade deficits, high interest rates and high consumer inflation," the study said.
The report points out that in 2012, India was ranked 94 among 176 countries on the Corruption Perception Index released by Transparency International. (KNN/SD)
A report released by a marketing communication firm - SPAG Asia (Strategic Partners Group) says India is the most difficult country to do business, followed by Indonesia and the Philippines, while Thailand and Malaysia are two countries where it is easiest for foreign investors to do business.
The study cites corruption as a big problem and potential source of social and political instability in the near term.
It says external political risks are highest for India mainly due to security threats posed by Pakistan. China has been pegged at the second spot in terms of external risks, as it is encountering friction with many of its neighbours. This category listed 22 Asian nations.
Social instability risks are also highest in India and Indonesia, while they are lowest in Vietnam and China, the study revealed.
Insufficient efforts by the government and political leadership, regulatory and policy hurdles, aggressive tax regime, reversals in trade openness, sensitivity to intellectual property and economic slowdown have contributed to making foreign investors wary, it pointed out.
"As the second term of the Congress-led coalition government comes to an end in India, its record has disappointed business. Policy paralysis and slow decision making have resulted in a weak macroeconomic situation, with high fiscal and trade deficits, high interest rates and high consumer inflation," the study said.
The report points out that in 2012, India was ranked 94 among 176 countries on the Corruption Perception Index released by Transparency International. (KNN/SD)
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