- February 8, 2018
- Posted by: nitin
- Category: Feed
India is the most attractive investment destination, ahead of China, Southeast Asia, Latin America, and North America, according a survey by consulting firm Ernst & Young. Thirty-two per cent of the investors in the poll ranked India as the most attractive market, followed by China, which received the top approval of 15 per cent.
India emerged as the number one FDI destination in the world during the first half of 2015. With FDI capital inflows of $30.8 billion, India has outpaced all other economies, moving up to the premier position from being in the fifth spot during the corresponding period of the previous year, Ernst & Young said.
By 2020, investors see India racing to become one of the world’s top destinations for manufacturing, as well as a regional hub for operations. India could become the world’s third largest economy after 2030 and its ascension could see France and Italy kicked out of the exclusive G8 group or its membership increased to 10 to accommodate India and Brazil.
Even as the rest of the world is expected to show moderate growth, India is likely to be a bright spot in 2016, as per the latest World Bank growth forecasts, that put India at the top of the heap among major economies. Foreign Direct Investment flows into India nearly doubled in 2015 as per the UN’s trade agency.
India is the world’s biggest outsourcing destination in terms of financial attractiveness and business environment, according to a study published today by a London-based global management consulting firm. A T Kearney’s 2016 Global Services Location Index (GSLI) rated India as number one out of the total 55 countries analysed.
When other emerging markets like Brazil are suffering through recession, India is hanging tough. As India’s large consumer population spends more money, it will become even more insulated from the boom-bust commodity cycles. India continues to top Nielsen’s global consumer confidence index for the seventh quarter in a row, however, the optimism remains cautious on the account of global woes. The country’s confidence score remained constant at 131 points in the December quarter, same as the September quarter. India was followed by the Philippines (117), Indonesia (115) and Thailand (114), according to the online survey conducted by Nielsen.
The Reserve Bank of India (RBI), India’s central bank also mentioned that its introducing reforms to help entrepreneurs start companies in India. In particular, the RBI will make it easier for foreign venture capital companies to invest in Indian start-ups. This will be done through escrow agreements and simplifying the paperwork needed to receive and make payments.
However, as inflation comes under control and some of the macroeconomic indicators look positive, 2016 should be a better year than 2015. “The industry is looking at a period of stability after a volatile 2015. This sense of optimism seems to be rubbing off on the Indian consumer, and consumption is expected to get a fillip in the New Year.