Tips to lure investment from China
Global investors will closely watch the performance of the Indian administration in addressing the challenges faced in the World Bank’s Doing Business ranking amid the global geopolitical tension involving China.
“You have to ask this question — why Vietnam is doing so well, why Korea and Taiwan have done so well. It is because of the ease of doing business in those places. So it’s very important for India to look at that,” said Mark Mobius, co-founder Mobius Capital Partners, at a webinar organised by IFA Global.
India stands 63rd among 190 economies ranked by the World Bank on ease of doing business. While the country has moved up 14 places , there are areas such as enforcing contracts (163) and registering property (154) where it lags.
“If the administration in India could do something to study that index and solve the various items on that index that makes it difficult to do business in India, then they would take off,” said Mobius.
He listed three areas that are in the focus of investors — the large domestic market, the substantial number of English speaking people who can work in any part of the world and an administration willing to undertake reforms.
“Consumer-oriented industries and by that I mean not only products but services as well, educational services, health services and software services are currently interesting and given the push for infrastructure spending that is another area companies would look at,” Mobius said.