India has emerged as one of the top three choices for overseas investments in the next 2-3 years, according to the FDI survey released by the Confederation of Indian Industry (CII), in association with EY. The CII-EY FDI survey on the theme, ‘How can India step up its game?” has been brought out to gauge the market sentiment amongst the Indian as well as non-Indian MNCs.
According to the survey, more than two-thirds of the MNC respondents, India is the number one choice for future investments. 25% of the respondents, who represent non-Indian HQ MNCs, view India as the first choice for future investments. The survey shows that more than 80% of all the respondents and 71% of the non-Indian headquartered respondents plan to make investments globally in the next 2-3 years. About 30% of companies are planning to invest more than USD 500 million.
About 50% of respondents see India amongst the top three economies or leading manufacturing destinations of the world by 2025. The respondents have pinned down market potential, skilled workforce, and political stability as the top three reasons to make India their favored destination. Other key factors which contribute to the attractiveness of India as an investment destination include cheap labor availability, policy reforms, and availability of raw materials.