Slow pace of integration with global economy together with decline in portfolio capital investment caused India to slip to 56th rank from 49th last year in AT Kearney’s 2003 globalisation index.The low ranking has placed Pakistan (50), Bangladesh (54) China (51) and Philipines (52) ahead of India in the index, management consultancy firm AT Kearney said in its latest report.“India saw its overall economic integration with the rest of the world rise slightly, but with a number of other developing countries improving their scores at a higher rate, India fell several places in the final ranking”, it said.In the category of weaknesses, it said inflows from foreign investors reached only a modest $1.6 billion in 2000 but it slipped to $1.48 billion in 2001. “Portfolio capital flows declined modestly between 2000 and 2001 as global investors looked for safe haven during an increasingly volatile economic period”, the report said.It said bright spots for India included levels of personal contact which refer to travel and tourism sectoral development, internet and telecom connectivity and foreign direct investment (FDI) flows.FDI flows increased from $2.3 billion in 2000 to $3.2 billion in 2001, it said while adding “ but at 0.67 per cent of the total economy, these levels were quite small compared to China’s 4.26 per cent of its economy.”
