India slips 24 points on investment index for mining sector

New Delhi: India has moved down the order on the overall investment attractiveness index to 97 from the earlier 73, a survey of mining and exploration companies for 2016 showed.

India dropped from its previous rank in the overall investment attractiveness index and has been placed among the 10 lowest nations, the Fraser Institute's annual survey of mining and exploration companies for 2016 has said. The survey has ranked India 97 out of 104 jurisdictions.

"India has slipped from its previous rank of 73 in 2015 (out of 109) in overall investment attractiveness index and has been placed with Afghanistan, Zimbabwe and Mozambique among the lowest 10 countries," it said.

The main reasons behind India's poor show are low score in policy perception, uncertainty concerning the administration, interpretation and enforcement of existing regulations, regulatory duplication, inconsistencies and multiple taxes, legal system and uncertainty concerning disputed land claims, the report said.

However, India's rank is relatively better in conditions like "uncertainty concerning environmental regulations, quality of infrastructure and political stability." Considering both policy and mineral potential in the index, the Argentinian province of Jujuy ranks as the least attractive jurisdiction in the world for investment, it said.

"Jujuy replaced another Argentinian province, La Rioja, as the least attractive jurisdiction in the world. Apart from Jujuy, the bottom 10 jurisdictions in 2016 (beginning with the worst) are Neuquen, Venezuela, Chubut, Afghanistan, La Rioja, Mendoza, India, Zimbabwe, and Mozambique," the report said.