Connecting Corporate Ratings with Real-world Financial Commitments: The PRISM Approach

In a bid to evolve beyond traditional ease-of-doing-business measures, Primus Partners Pvt Ltd, a leading management consulting firm in India, has unveiled PRISM (Primus Regional Investment Suitability Matrix). This innovative framework aims to provide a data-driven, multi-dimensional evaluation of investment attractiveness across regions.

Primus Partners, known for its expertise in policy, technology, and economic advisory, has designed PRISM to cover a broad spectrum of factors that influence investment decisions. These factors include land costs, labor expenses, logistics, regulatory compliance burdens, approval timelines, regulatory efficiency, infrastructure readiness, transparency, government engagement, industry collaboration, social infrastructure, environmental sustainability, and workforce quality.

The four dimensions of PRISM are Cost of Doing Business, Speed of Doing Business, Ease of Doing Business, and Ease of Living. By integrating nine key factors and 64 sub-factors, PRISM offers a data-backed, actionable roadmap to help governments and policymakers benchmark regions, identify key bottlenecks, implement targeted interventions, and strengthen policy frameworks for long-term investment sustainability.

Recent data reveals an interesting disparity between the Business Reform Action Plan (BRAP) rankings and actual investment inflows. For instance, Andhra Pradesh, which ranked first in BRAP 2019, placed eighth in private investments. Similarly, Telangana, Tamil Nadu, and Punjab, labeled "Top Achievers" in BRAP 2020, ranked 10th, 13th, and 14th respectively in private investments.

This disconnect underscores the need for a more nuanced evaluation model. Shri Amitabh Kant, G20 Sherpa, Government of India, echoed this sentiment, emphasizing the need to evolve beyond traditional ease-of-doing-business measures. Kanishk Maheshwari, Co-Founder & MD, Primus Partners, concurred, stating that investors evaluate multiple factors beyond ease-of-doing-business rankings.

In the 2019-20 fiscal year, the region with the highest private investments was Maharashtra, which also ranked first in the BRAP rankings for the same year. However, Karnataka, India's top private investment recipient in 2019-20, was ranked 17th in BRAP.

PRISM aims to bridge this gap by offering a comprehensive evaluation of investment attractiveness. For more information about PRISM and Primus Partners' strategic insights and innovative solutions, visit www.primuspartners.in.