India is the most secure business destination in south Asia, a study conducted by global business risk consultancy revealed.

The country has emerged as the most secure location for business in South Asia, opposite the general perception about high political and security risks, while 49 per cent of the countries worldwide do not provide a stable environment for trade, a study shows.

The study reported, as India remains low in political and security risks, the concerns over
political stability and terrorism in neighbouring countries are much higher.

Control risks' India representative Jake Stratton said Risk map 2007 indicates geographically difficult operating environment for business around the world, but companies can successfully tackle formidable country risk issues by developing country-sensitive risk management strategies.

Indian multinationals are directing a great deal of attention to these issues as they expand
their operations into volatile markets like Latin America and Africa, he added.

The general direction of India's Economic Policy would remain positive, although coalition politics could compromise the government's ability to deliver some of the liberalisation measures demanded by investors, it said.

According to report, 96 out of 198 countries surveyed (49 per cent) have been ranked as being medium, high or extreme for political risk -- indicating, at best, businesses in these
countries may face disruption and, at worst, the state is actively hostile
to foreign business.

In terms of security risks for businesses worldwide, 78 out of the 198 countries surveyed
(40 per cent) have been ranked as being medium, high or extreme for security risk -- which means that, at best, there is a reasonable possibility of security problems affecting companies and, at worst, business of any sort may be completely untenable.