Baseline Profitability Index (India ranks 1)

Investment guidance

• Various factors for investing abroad (other than the obvious economic growth)
• financial stability, 
• physical security, 
• corruption, bribes, kickbacks
• expropriation by government, 
• exploitation by local partners, 
• capital controls, and 
• exchange rates as well.
• What is Baseline Profitability Index?

Source: The Hindu

Indexes used by BPI

• Corruption Perception Index
• Corruption is measured by comparison across countries using the Transparency International’s Corruption Perceptions Index, a measure for the perceived levels of public-sector corruption worldwide. 
• 2014 rank 85/175
• 2013 rank 94/177
• Index of Investor Protection by World Bank
• In 2014, the average BPI score across all countries was 0.99; this year it is 1.03 — meaning the expected returns over the next five years are about three-quarters of a per cent higher a year.

CRITICISM:
The calculation of the BPI is an imperfect exercise fraught with assumptions, Mr. Altman says.

• “For example, how does a survey about perceptions of corruption translate into likelihoods of having to pay bribes, and how big might those bribes be?” he wrote when he first introduced the index

[Sources: The Hindu, Foreign Policy Magazine]