New Delhi, Feb. 9 (PTI): A slow pace of integration with the global economy together with a decline in portfolio capital investment pulled India down to the 56th position from 49th last year in AT Kearney’s 2003 globalisation index.
The low ranking has placed Pakistan (50), Bangladesh (54) China (51) and the Philippines (52) ahead of India in the index, management consultancy firm AT Kearney said in its latest report.
“India saw its overall economic integration with the rest of the world rise slightly, but with a number of other developing countries improving their scores at a higher rate, India fell several places in the final ranking,” the report said.
In the category of weaknesses, inflows from foreign investors reached only a modest $ 1.6 billion in 2000 but it slipped to $ 1.48 billion in 2001.
“Portfolio capital flows declined modestly between 2000 and 2001 as global investors looked for a safe haven during an increasingly volatile economic period,” the report said.
The bright spots for India included levels of personal contact in travel and tourism development, internet and telecom connectivity and foreign direct investment (FDI) flows.
FDI flows increased from $ 2.3 billion in 2000 to $ 3.2 billion in 2001. “But at 0.67 per cent of the total economy, these levels were quite small compared with China’s 4.26 per cent of its economy,” the report said.
While India’s imports and exports totalled $ 140 billion in 2001, up from $ 137 billion a year ago, as a share of the total economy trade reached only 29 per cent, lower than Pakistan or Peru.