India fares badly in global E&P Investment Perception Survey: A lot more needs to be done by the government
In a prestigious global survey of oil & gas sector professionals, India continued to fare poorly in the investment perception index despite the much hyped reforms package by the Indian government. 8As a possible investment destination, it is 29th among 39 medium reserve countries 8No doubt India's core has moved up a few 7 points in 2017 over 2016 but it is still lower than how it was perceived in 2017. 8Globally, India figured way below China and just a notch above militancy torn Myanmar 8The survey takes into account a host of factors including the cost of regulatory compliance in terms of regulatory enforcement, environmental regulations, labor regulations and employment agreements, regulatory duplication and inconsistencies and the legal system. 8There is a commercial environment index that looks at fiscal terms, taxation in general, trade barriers, quality of infrastructure and labor availability and skills 8A lot of those surveyed found Indian rules and regulations restrictive and more people do not want to look at India as an investment destination than China and a whole lot of other countries. 8India ranks low when marked under these indices. Comment:OLAP now allows all kinds of players, big and small, to enter India's E&P business. This is a time for India to strongly showcase its potential as an investment destination. A global survey of oil & gas professionals is difficult to impress unlike a single monitoring authority such as Moody's. Indian policy makers must be less self centered, because for the global oil & gas player, India is not the best destination given that its basins are not as prospective as other destinations around the world. But there can be opportunities available here equal to if not better than many countries higher up in the index. The Indian government must take up an aggressive public relations campaign among the main investment originating countries around the world to correct the misimpression, if any. Identifying potential candidates and launching a one-on-one contact campaign is what can help. Indian embassies can also play a big role here. The benefits will be enormous if the negative perception can be changed. One-off meetings in the oil & gas capitals of the world are just not enough to dent the impression that India seems to have garnered over the years. Almost all big oil & gas majors have tried their luck in India but all of them, with the exception of BP which is stuck with its $ 8 billion investment, have beaten a hasty retreat. The treatment that they were meted out was quite unsavory. A lot more needs to be done than what has been till now to get global opinion to work for India. Click on Report for more.