Singapore most attractive destination for Chinese firms; India slips to 37

India has slipped six notches to 37th position among 60 major economies in the world in terms of their attractiveness to Chinese firms, while Singapore topped the list compiled by the Economist Intelligence Unit.

According to the latest EIU's China Going Global Investment Index, Singapore overtook the US as the most attractive destination for Chinese overseas direct investment.

Hong Kong, Malaysia and Australia rounded the top five.

Among BRIC economies, Russia's index rank moved up by six places to 11th, with its economic prospects having improved owing to higher commodity prices, while South Africa's rank has risen by six places to 44th.

However, Brazil dropped by 19 places to 53rd place and India is down by six positions to 37th amid "tenser political relations with China", it said.

"Despite challenges for Chinese investors in India, the country's growth prospects are the brightest across major economies and several Chinese companies, such as Huawei (a telecommunications firm) and Xiaomi (a consumer electronics company), have built successful businesses there," the EIU report said.

E-commerce could be a particular strength for Chinese firms in the global consumer sector in future, the report said and added that Alibaba, is amplifying its e-commerce footprint in South-east Asia and India through investments in Lazada and Paytm, respectively.

Although developed economies still dominate the upper ranks of the index, emerging markets have improved their positions and notable climbers include Malaysia (4th) and Kazakhstan (13th).

Several developed economies have tumbled down the index: the UK slipped the most, by 29 places to 41st, owing to the worsened outlook for economic growth following its decision to leave the EU.

Countries that rank consistently high across the six industry indices include the US, Japan, India and Iran.

"While the US and Japan owe their positions mainly to the opportunities they offer Chinese firms to obtain technology and brands through mergers and acquisitions (M&A), India and Iran are fast-growing markets in which companies from China are likely to be competitive," the report noted.

The index ranks 60 major economies in terms of their attractiveness to Chinese firms, drawing on 57 indicators spread across opportunity and risk pillars.