Invest Asia: India Versus Japan

indiaWhen it comes to investing in Asia, where is the best market? In a recent study, India came out on top for FDIs, out of 110 countries worldwide. America only reached position number 50 and China – traditionally the place to invest in Asia – came in at a poor 65.

The study was the result on a Baseline Profitability Index (BPI), created by Daniel Altman who reported that in 2015:

“India coming out on top, with growth forecasts up, perceptions of corruption down, and investors better protected following the election of a government led by Prime Minister Narendra Modi.”

The BPI is based on: the following levels: the value an asset grows, how that value is preserved while the asset is owned, how easy it is to perpetrate of proceeds from the sale of the assets.

Japan is also not such a place to be sniffed at, when it comes to foreign investment opportunities. In the first quarter of 2015 its GDP increased by an annualized 3.9%, which was its highest it had been since the same quarter back in 2014. While that growth is mainly connected to inside investments, it should still be a factor for potential FDIs. Indeed, profits are increasing and yen is weakening. Japan-based firms like Panasonic and Toyota Motor are taking advantage of this, substantially boosting their global investments.

Ultimately it depends on very much on timing, and corporation. For those looking into Asia investments, it is crucial to investigate how other companies in those industries have fared in each destination.

 

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