"India works"

Hong Kong-based Steve Vickers is one of Asia's most respected business risk consultants. Financeasia.com reports today on some remarks he has made about doing business in India. Highlights of this: he thinks that reports that Foreign Direct Investment (FDI) into India is one-tenth of the level going into China may be misleading:

The International Finance Corporation suggests the gap is narrower between China and India. Applying a standard measure of FDI, the IFC estimates that China's inflows on average may halve to $20 billion a year while India's more than doubles to $10 billion, reports International Risk.

He also concludes with a suggestion that India business risks are manageable if addressed properly:

"..provided companies take appropriate action to address the risk accordingly and conduct robust due diligence - India works," says Vickers. "It represents a huge opportunity for the investor who has an appetite for detail, is patient and looks to the long term."

As companies find their profits increasingly squeezed in China, and as regulators tighten rather than loosen the boundaries of what can be done in print and broadcast media and, to a lesser extent, the Internet, India will certainly look increasingly attractive. It is not without its challenges, but increasing numbers of people seem to feel that those challenges are worth addressing.