India has slipped out of the Kearney’s FDI Confidence Index 25-country list for 2020. The United States retained its top spot for an eighth year running, having dislodged China from the top ranking in 2013.
India was ranked 16th in the 2019 list, while it occupied 11th spot the year prior. In 2017, India made the top ten and was ranked eighth.
The coronavirus pandemic has made a profound impact on investments as most economies were shut down for varying amounts of time in the wake of the outbreak of the deadly virus.
China, which was ground zero for coronavirus with the deadly outbreak first reported in Hebei province, has slipped to 8th position this year, its lowest ever position in the list. It is a big fall for Asia's largest economy that topped the Kearney list for 12 successive years until 2012.
China, Brazil and the United Arab Emirates were the only emerging markets to make the 2020 list, while the top ten positions remain unchanged barring Switzerland's entry and Singapore's exit. Singapore now occupies 12th spot.
"The lasting effects of the pandemic will profoundly reshape FDI flows in the coming years," the report noted. Rather ominously the report said that "the negative effects of COVID-19 on the investment environment are likley to be acute and long-lasting."
The immediate damage from the coronavirus pandemic notwithstanding, investors are also wary of the danger posed by rising global temperatures. "Investors in all regions rank extreme temperatures as the biggest climate risk today and over the next three years," the report said.
About 77 percent investors believe climate-related factors will impact FDI assets over the next three years. Another 79 percent said that climate change regulations across geographies will have an impact on business.
First Published: IST