In a thumbs up for the government, India has been ranked as the most attractive investment destination in the world for the next three years, according to 'Ready, set, grow: EY's 2015 India attractiveness survey'.
Thirty-two percent of the business leaders from global corporations who were polled for the survey by EY, a global leader in assurance, tax, transaction and advisory services, said India is the most attractive investment destination in the world, followed by China, Southeast Asia and Brazil.In a thumbs up for the government, India has been ranked as the most attractive investment destination in the world for the next three years#
The survey, conducted during March and April 2015, includes the views of more than 500 decision-makers from multinational organizations across sectors including industrials, automotive, consumer products, life sciences, infrastructure, technology, financial services and others. The report also presents a detailed overview of foreign direct investment (FDI) inflows and projects, covering sectors, emerging FDI destinations and countries of origin.
It finds major gains in perception in comparison to the findings of the 2014 survey in key areas such as macroeconomic stability (up from 70 per cent in 2014 to 76 per cent in 2015), political and social stability (up from 59 per cent in 2014 to 74 per cent in 2015); relaxation in FDI policy (up from 60 per cent in 2014 to 68 per cent in 2015); and the government's efforts to ease doing business (up from 57 per cent in 2014 to 67 per cent in 2015). Among India's most attractive features for doing business, investors rated its vast domestic market and availability of labor as most appealing.
“The survey findings are a testament to India's growing appeal with the global investment community. Over the last year, the improvement in India's macroeconomic indicators, accompanied with the ongoing efforts to revitalize growth have offered new hope to investors. It is an encouraging start and we need to build upon it further,” said Rajiv Memani, EY Chairman of the Global Emerging Markets Committee and India Regional Managing Partner.
Speaking at the launch of the report, Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India said, “We are determined to make India an extremely easy and simple place to do business. Our first priority is to do away with the many procedures and rules, followed by bringing in consistency and clarity in all our policies and tax regime and developing a world-class infrastructure.”
Among specific reforms expected to drive growth, 89% of the investors said that investment in infrastructure projects and the 100 Smart Cities project would be significant, while both financial inclusion, including Digital India and proposed corporate tax reduction from 30 per cent to 25 per cent, were considered significant by 83 per cent of the respondents. Implementation of Goods and Services Tax (GST) and legislation on land acquisition were also mentioned by investors as important for attracting FDI.
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