The IFC had listed India at the bottom of over a hundred countries in attraction for foreign investors due to the difficulties put in their way
Joseph O'Keefe, senior manager at the IFC said on Wednesday that when the agency listed India at the bottom it used a very narrow range of factors and therefore should not be regarded as reflecting on the country in other respects.
"India's low rating was linked to the legendary slowness of the Indian court system and the fact that it takes sometimes as long as ten years to dispose of a bankruptcy case," he said. Despite the hurdles faced by foreign investors, India is IFC's third largest exposure.
As of July 31, 2005, IFC-held portfolio in India consisted of investments in 79 companies, with total exposure of $1.25 billion for IFC's own account and $348 million for B-loan participants.
"IFC's strategy in India is to support Indian industry's efforts to achieve international competitiveness, and to focus on adding value in infrastructure, health and financial sector projects through the provision of equity debt or advisory services," an IFC statement said.
IFC will continue to invest in companies, which are reconstructing and modernizing to become internationally competitive; expanding and moving towards regional or global presence; and developing new products and markets.