Among the top five investment destinations in the world, India has emerged as one of them. According to a survey, this is due to their account on large market size as well as their high potential for customers. The survey also added that notwithstanding bullish business projects, it can be perceived that India can be a risky place for investments.
BDO Global Market Opportunity Index 2012, a consulting firm has covered more than 1,000 senior finance officers spread across 14 countries. These countries include UK, US, and India. The views of the company’s finance chiefs to expand in specific countries has been examined in the said survey. India continues to be in the fourth spot of the list which is topped by China when talking about investment destinations in the world. Included in the list of top five countries are US at the second spot, Brazil at the third and Germany to be the fifth. India’s appeal to be an attractive investment destination is attributed to its cheap labor, customer potential and its large size market. Another factor that drives investment to the country according to the survey are media and telecoms (TMT) as well as professional services and technology. In addition to this, there is a fair planned investment consistency in India. 32 percent of Chief Financial Officers (CFO) surveyed in Saudi Arabia are expected to enter this market.
In the list of top ten countries like United Arab Emirrates, Australia, Russia, Mexico, and UK are included. “The ‘big seven’ (China, USA, Brazil, India, Germany, Russia and UK) lead the index as attractive investment markets, due to size and customer potential… (these nations) are the ones that CFOs feel most comfortable investing in,” as stated in the survey. 66 per cent of the CFOs surveyed are setting their sights on a ‘big seven’ of attractive investment destinations as of this year. In addition, there is a difficulty for CFOs across the globe to conduct business overseas ac compared three years ago. This is due to reasons such as poor economic situation, greater competition and greater competition. CFOs is putting into consideration some parts of Europe to be risky as those politically unstable countries of the Middle East. It is perceived that Spain is a riskier than Egypt as an investment destination. Greece is also perceived to be more risky compared to Syria and Libya. However, according to CFOs Iran is the most risky country to invest on. This is then followed by Iraq, Greece, Syria and Libya.
Three of the four BRIC countries which includes Russia ranks ninth, China 13th, and India 20th are included in the top 20 risky markets. This can be interpreted that, even BRIC countries can be an attractive market for investments, it also comes with some inherent perceived risks.