INDIA CAPTIVATES
Key factors driving India ’ s attractiveness :
1 . Number one FDI destination
India has emerged as the number one FDI destination in the world during the first half of 2015 . With FDI capital inflows of US $ 30.8b , 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 .
2 . Most attractive market
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 .
3 . Manufacturing Leads Investment plans
Manufacturing has regained its share in FDI capital flows in 2014 , amounting to approximately 46 %. Investors are most optimistic about the sector , with 62 % of those interested to expand or enter India over the next year , saying that they plan manufacturing activities .
4 . Make in India program - Positive for Manufacturing
After its announcement , 55 % of survey ’ s respondents were aware of the Make in India program and 69 % of those who are aware of the initiative are likely to invest in manufacturing in the next five years .
5 . Investors Highlights Improvement – FDI Policies , Easy of Doing Business
Business leaders find India ’ s macroeconomic and political stability , FDI policy and ease of doing business more attractive in 2015 , compared with EY ’ s 2014 .
6 . India in 2020 – A program Outlook
Investors see India speeding up pace toward becoming one of the world ’ s top destinations for manufacturing , as well as a regional hub for operations .
7 . Reforms Expected to Drive Growth
A number of recent government reforms are being well received by investors , who expect them to increase India ’ s FDI attractiveness significantly .
Action points for the Government to improve India ’ s investment climate
Ÿ Develop infrastructure
Ÿ Increase regulatory ease and transparency
Ÿ Streamline taxation
Ÿ Implement economic reforms
Ÿ Simplify labor laws Action points for businesses to leverage their presence in India
Ÿ Understand India ’ s unique investment climate and market dynamics
Ÿ Assess sector options
Ÿ Evaluate strategic options
Ÿ Prepare for tax changes
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