India has emerged as the leading choice for foreign direct investment (FDI), a latest survey of multinational corporations (MNCs) has revealed. The survey, conducted by the Confederation of Indian Industries (CII) and EY found, India is set to become one of top three destinations for FDI inflow by 2025.
As per the respondents, the country’s market potential, skilled workforce and political stability are the three key reasons that make India their favoured destination. Further, availability of cheap labour, policy reforms and availability of raw materials, are positive factors that boosts India’s prospects. Recently enacted reforms in the country such as corporate tax cuts, measures to improve ease of doing business, simplification of labour laws, FDI related reforms and its focus on human capital, helped India’s image as a destination for FDI.
More than 67 per cent of the MNC respondents said, India is among their top choices for future investments. While among foreign MNC respondents, 25 per cent view India as the first choice for future investments. The survey shows that more than 80 percent of all the respondents and 71 percent of the non-Indian headquartered respondents plan to make investments globally by 2023. And about 30 percent of companies are planning to invest more than US$ 500 million (Rs 3,700 crore).
Source: Business Standard
