INDIA LOSES OUT TO ARMENIA IN NUMBER OF SUPER GROWTH COMPANIES
Asia Pulse
April 2, 2007 Monday 3:06 PM EST
Amid domestic firms’ growing appetite for merger and acquisitions and
a robust economic expansion, India has surprisingly lost its place
as the world’s second largest home to "super growth" companies to a
relatively unknown Armenia.
According to a new study released on Friday by global consultancy major
Grant Thornton, there was a huge 56 per cent plunge in the number
of super growth companies in India. These are the companies with
significant above-average growth in areas like turnover and employment.
While the US has retained its top position on Grant Thornton
International’s Super Growth Index for third year in a row, India
suffered a dramatic drop to 14th position as the country’s proportion
of super growth companies halved from 34 per cent to 15 per cent.
India has been replaced by a newcomer Armenia in second position with
38 per cent proportion of super growth companies there, as against
44 per cent in the US.
The other top five countries in the league include Ireland (third),
the UK (fourth) and South Africa (fifth), all of which have improved
their rankings.
Other major climbers on the index include Russia,Philippines, Argentina
and Italy.
However, Hong Kong — another strong performer in 2006 at third
place, has also dropped out of the top ten list to 11th position
this year. Other major fallers in the chart include Malaysia and
New Zealand.
According to Grant Thornton International’s Alex MacBeath, fall of
last year’s two strongest performers India and Hong Kong was the most
significant finding in the survey.