India Must Make Markets Attractive To Draw Investments

For global investors, the BRICs are losing their sheen even as other emerging markets, especially Indonesia and Philippines, become more attractive. What are the reasons behind this? Both Indonesia and Philippines have grown at a robust 6-6.5 per cent per annum for the last 2-3 years. Their domestic consumption demand is almost two thirds of the GDP. Philippines, with a median age of 22 and with a large English speaking population is fast becoming a more attractive BPO destination than India. Rating agencies such as Fitch, S&P and Moody’s have raised the credit rating of both these countries. In this scenario, India cannot rest on its past laurels and must create conditions necessary to attract foreign investment so badly needed to augment infrastructure projects. There are approximately 40 other emerging markets who are moving up the value chain with the doggedness of a bulldozer, and unless our capital markets look attractive the money from global investors could definitely go elsewhere.