The current economic slowdown has pushed India down one spot to eighth on a list of most valuable nation brands compiled by Brand Finance.
Meanwhile, US continues to be at the top the list, followed by China, Germany, Japan and the United Kingdom, according to Brand Finance’s Nation Brands 2017 report.
In terms of valuation, India’s National Brand Value in 2017 is USD 2.04 trillion, down one percent from last year’s USD 2.06 trillion. The country’s brand rating, however, improved from ‘AA-‘ to ‘AA’.
Despite a rating improvement, India does not feature in the list of 10 best performing nation brands.
“India’s nation brand still lags behind that of China in the league table, but it now sits comfortably in the top ten and if its economic performance continues to stay strong, it might well crack the top five soon,” it added.
However, India took a hit on several fronts. “The less than impressive track record of implementing change renders the nation’s outlook unstable. This poses a threat to its future nation brand value,” said David Haigh, CEO, Brand Finance told Business Standard.
In 2015, India surpassed both the US and China to top the list of greenfield foreign direct investment (FDI) by volume. In 2016, Indian companies were responsible for 272 overseas projects, placing India third as an Asian source country for FDI, behind Japan and China, according to the report.
While the US is still on top, a meagre growth of 2 percent is putting its dominance at risk. Macroeconomic challenges and slow GDP could be the reasons for stagnation in the US.
The report also said that Asian nation brands are seeing a boom as the West stagnates.
Iceland topped the ‘Top 10 best performing nation brands’ list. “Thanks to the hit television show, Game of Thrones, which films most of its winter scenes in Iceland, the country has seen a record 1.8 million foreign visitors in 2016, up 40% from 2015,” the report said.