Country Rating

An investor who looks for investment oppurtunities in India assess its situation based on certain parameters listed below.

Political risk

Internal and external security situation, policy competency and consistency, and other such factors that determine whether a country fosters an enabling business environment;

Commercial risk

The sanctity of contract, judicial competence, regulatory transparency, degree of systemic corruption, and other such factors that determine whether the business environment facilitates the conduct of commercial transactions;

External risk

The current account balance, capital flows, FX reserves, size of external debt and all such factors that determine whether a country can generate enough FX to meet its trade and foreign investment liabilities;

Macroeconomic risk

The inflation rate, government balance, money supply growth and all such
macroeconomic factors that determine whether a country is able to deliver sustainable economic growth to provide further expansion in business opportunities.

Based on above lines, our country's overview would be :

India's diverse economy encompasses village farming, modern agriculture, handicrafts, modern industries, and services (the most dynamic sector).
Until the early 1990s, the economy was held back by stringent state controls.

These have been liberalised considerably; and, since 2000 the economy has grown on average by over 7% a year.India faces major challenges from chronic infrastructure constraints, endemic poverty, an inefficient bureaucracy, corruption, ethnic and leftwing insurgencies, and occasional politicallycharged communal violence.