A couple of months ago the $165 Billion pension fund, CalPERS decided to invest in India. CalPERS’ move was seen as a vote of confidence in the structural reforms that have made India one of Asia’s most efficient stock markets. Now there is more to cheer. This time around, Newsweek International has named India as the best place for foreign investors in a cover story, “The World’s Best Countries.”

Last year, foreign investors pumped in $9.9 billion, the highest in a year since the liberalization (1991). Interestingly, India has the highest average return on investments compared to other Asian countries. The average return-on-investment (RoI) as of December 2003 in India stood at 19.3 percent, while in China it was 14.25 percent and Thailand it was 13.3 percent.

It’s worth noting that even though China attracts far more foreign investment than India, India’s “mature governing institutions” have made a difference. The magazine point out that India’s ‘transparent legislature and independent—if grindingly slow—judiciary’ has fund managers delighted over the huge tech-savvy market. “Where the $165-billion U.S pension fund CalPERS goes, other international investors tend to follow,” says Newsweek.