IPO grading is an additional input available from an independent rating agency to help the retail investor in his decision.

With the GDP growth rates at 8.5% and annual corporate profit growth of more than 20%, the country's business scenario seems very confident in public offerings. In spite of some disturbances, economists agree that India's economic story is still in a stable position in the medium to long-term. The world economy is changing at a rapid pace. Countries which enjoyed the leadership position in the past in global economic chain have now lost their positions. To get their positions back they are changing their business strategies. Investors are trying to find out the new potential investment areas where with high risk, they can gain more profit.

Many countries of Asia and Africa have become the major interest areas for the investors. In Asia, India and China are the two major countries where industries are growing day-by-day. These two countries are likely to be the world's two biggest economies by mid-century. Although India has underperformed in the first lap of the growth race, there is a strong possibility that it may well move ahead and represent an economic opportunity hub in future. Today, India is regarded as one of the fastest-growing large economies in the world. The country is endowed with huge human and natural resources and with costs that are at the very low end of the global average. The Indian economy is characterized as a high-risk economy, but still most of the investors are making India their target.

This is because India is offering the following advantages compared to its Asian rivals such as China, Japan and Singapore. Some sectors of the Indian economy are opened to foreign investors, and several others are under reservation of states and local governments. According to a report of KPMG, these restrictions impose a cost burden on manufacturers. However, many manufacturing sectors (apart from defense and aerospace) are open for investment. A survey by the World Bank reveals that the burden of licensing and bureaucratic administration has significantly been reduced since 2000 in the country. From time to time different reforms in the Indian economy have helped India in scoring over China, Brazil and other competitor countries.

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