India among ‘More Globalised Developing Nations’

WASHINGTON, DEC. 5. India is among twenty-four "more globalised developing countries'' listed by the World Bank which says globalisation has enabled the country to obtain tangible benefits in economic growth and trade. By contrast, the World Bank in a study says, the "less globalised countries such as Pakistan have grown less.''

However, the study titled `Globalisation, Growth and Poverty' says not all States in India are uniform in their infrastructure to attract investment, and suggests that the benefits of globalisation will be even more if they catch up with more advanced States like Maharashtra.

Citing a Confederation of Indian Industry-World Bank survey covering 1,000 private firms in 10 States, the bank says: "India is a particularly interesting case study as it committed itself to substantial trade and investment liberalisation in the early 1990s.

Many policies are controlled at the State level so there is substantial variation in the investment climate across the country. Since India is home to the largest number of people subsisting on $one a day or less, the potential for improving the competitive environment as an effective poverty reduction tool is enormous.''

According to the survey, Maharashtra provided the "best'' investment climate while West Bengal and Uttar Pradesh were seen as offering poor investment climates. The study also looks at "some of the factors that make up a good investment climate, how locations can improve their investment climates and other ways in which Governments try to support their firms to be more productive and competitive.'' Three relatively low-income states were seen as having quite good investment climates - Andhra Pradesh, Tamil Nadu and Karnataka.