|A leading 32% of the investors ranked India as the most attractive market this year, while 60% placed the country among the top three investment destinations, in the recent concluded EY’s 2015 India Tax Attractiveness survey.
According to the survey of over 500 global business leaders from 28 countries, India is well-placed to become one of the world’s top destinations for manufacturing, as well as a regional hub for operations by the year 2020. More than three out of five respondents said they had plans to invest in India over the next year and 62% are looking at manufacturing, both to serve the Indian and global markets from India. The same trend is strongly reflected in the 1H15, where the sector witnessed +221% increases in FDI capital (YOY). Most of these respondents prefer to expand existing operations, followed by expansion through acquisitions and, if necessary, by joint ventures and alliances.
Within six months of the ‘Make in India’ program, 55% of our survey’s respondents were aware of the initiative. 69% among those who are aware of the program are likely to invest in manufacturing in the next five years.
Overall, India’s economic fundamentals have improved and its economy is likely to continue moving upwards on the growth trajectory as more business reforms get implemented. However, more than two-thirds of international investors stressed upon the need for India to improve its infrastructure, making it the highest priority for improving India’s investment environment.
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