A good investment has the right mix of risk and return. With Indian companies showing increasing interest in acquiring overseas firms, it would be prudent for them to assess the risk factor attached to a country. With this objective, ‘Mint’ has partnered with Eurasia Group to bring an exclusive Global Political Risk Index (GPRI) that will run every month.
The index, which is a composite measure of the state of a country’s government, society, security and economy, will look at several countries, including India, each month. GPRI measures a country’s ability to absorb political shocks—the higher the number, the more stable the country. In a study of 24 emerging market economies this month, India comes in at No. 13, a fall from the No. 11 position in August. But what is perhaps worse is that the outlook for India has changed from positive to negative. ‘Mint’ carried the second GPRI on 8 August.
GPRI (3) Graphic
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