India has been ranked the world’s most attractive investment destination for the next three years, as per a survey by consultancy firm EY released on Wednesday.
This comes close on the heels of this year’s World Economic Forum (WEF) Global Competitiveness Index showing that in a rather dramatic turnaround, India has climbed 16 places to the 55th position among 140 economies, ending five years of decline.
In the EY survey, 32% of the business leaders from global corporations polled said India was the world’s most attractive investment destination, followed by China, Southeast Asia and Brazil. “The finding reconfirms and reaffirms many other recent findings. India must continue the reform process on a sustained basis over a long period of time. The challenge for India is to grow at rapid rate of 9 to 10% per annum year after year for three decades or more,” industry secretary Amitabh Kant said at the launch of the report.
The survey — titled ‘Ready, set, grow’ — shows that there is an increased focus and emphasis on manufacturing, he said, adding that India’s growth in terms of FDI will be driven by manufacturing. Carried out in March and April, the survey includes views of more than 500 decision-makers from multinational organisations operating in sectors ranging from infrastructure, automotive, technology, consumer products and life sciences.
It finds major gains in perception as compared to the findings of the 2014 survey in key areas such as macroeconomic stability (up from 70% in 2014 to 76% in 2015), political and social stability (up from 59% to 74%); relaxation in FDI policy (up from 60% to 68%); and the government’s efforts to ease doing business (up from 57% in 2014 to 67% in 2015).