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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