Baseline Profitability Index (BPI) 2015

Date: June 27, 2015

India BPI China Hong kong

India becomes most attractive investment destination

 India has become most attractive investment destination in world after it was ranked first among 110 countries in a ranking of destinations for attractiveness to foreign investors. The ranking was based on baseline profitability index (BPI) 2015. In the 2014 index, India was at the sixth position and Hong Kong was number one.High ranking in this index indicates high returns and improving economic institutions. 

 

prepare iasBaseline profitability index (BPI)- The ranking based on a BPI is determined by assuming three factors-

      How much the value of an asset grows.
      The preservation of that value while the asset is owned.
      The ease of repatriation of proceeds from selling the asset.
The index combines measures for each of these factors into a summary statistic that conveys a country’s basic attractiveness for investment. Baseline Profitability Index (BPI) calculation also uses an index of investor protection compiled by the World Bank.