Directions (1-10): Read the passage carefully and answer the
questions given below it. Certain words/phrases have been given in bold to help
you locate them while answering some of the questions.
A global investor has many choices for his money. No country is
a natural choice as a top investment destination. But at times, history and
geography conspire to position a nation to become such a
choice.
Like China, which became the top destination for foreign direct investment two decades ago, the US, always a top contender, is becoming a destination choice driven by the fundamentally changed economics of energy with its discovery of shale gas. Among emerging economies, all the stars are aligned to push India ‘back to the future’ when it once was one of the leading economies of the world.
In global economy has very few bright spots. India is one of them. The crisis in Europe persists. China is slowing down and it is seeing a large shift of manufacturing capacity to other countries. Other large emerging economies like Russia, Brazil and South Africa face their own challenges.
Global investors do not have to be retold the fundamentals of the India Story. The country’s potential for one of the biggest infrastructure build-outs in the next few years is recognized. India’s need for a large amount of foreign capital to fuel its growth is established. The availability of highly-skilled engineers and scientists that has fuelled the setting up of R and D centres by many global companies is not questioned.
Unfortunately, India’s last decade has been one of unfulfilled potential. The heady GDP growth of 8% a few years ago had seen India feted at International for a for its economic performance and had investors lining up. But then, like the Indian cricket team, the country frittered away the huge economic momentum it had built. Growth rates fell to 4.5% the lowest decade.
Of course, many tried to explain away this slowdown, citing the global economic crisis and increasing commodity prices. But the fact remained that the heady growth of 8% hid some of the fundamental structural issues facing the country. India’s rating in the World Bank’s ‘Ease of Doing Business’ list was the lowest among the large developing economies.
Like China, which became the top destination for foreign direct investment two decades ago, the US, always a top contender, is becoming a destination choice driven by the fundamentally changed economics of energy with its discovery of shale gas. Among emerging economies, all the stars are aligned to push India ‘back to the future’ when it once was one of the leading economies of the world.
In global economy has very few bright spots. India is one of them. The crisis in Europe persists. China is slowing down and it is seeing a large shift of manufacturing capacity to other countries. Other large emerging economies like Russia, Brazil and South Africa face their own challenges.
Global investors do not have to be retold the fundamentals of the India Story. The country’s potential for one of the biggest infrastructure build-outs in the next few years is recognized. India’s need for a large amount of foreign capital to fuel its growth is established. The availability of highly-skilled engineers and scientists that has fuelled the setting up of R and D centres by many global companies is not questioned.
Unfortunately, India’s last decade has been one of unfulfilled potential. The heady GDP growth of 8% a few years ago had seen India feted at International for a for its economic performance and had investors lining up. But then, like the Indian cricket team, the country frittered away the huge economic momentum it had built. Growth rates fell to 4.5% the lowest decade.
Of course, many tried to explain away this slowdown, citing the global economic crisis and increasing commodity prices. But the fact remained that the heady growth of 8% hid some of the fundamental structural issues facing the country. India’s rating in the World Bank’s ‘Ease of Doing Business’ list was the lowest among the large developing economies.
