The art of investing is to balance risk and return. And with Indian companies increasingly looking at overseas acquisitions, perhaps they need an index to measure the risk factor attached to a country. For this, 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 each month, including India. 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 remains at the No. 11 spot. But the good news is that the outlook has changed from ‘neutral’ to ‘positive’. Mint carried the first GPRI on 4 July.
GPRI (2) (Graphic)
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