At a time when global business confidence remains uneven, India is standing out as a rare bright spot. New data from PwC report shows the country has emerged as the second-most preferred destination for international investment, tying with Germany and the UK, and trailing only the US.
From fifth place to the global top tier
India’s climb up the global investment rankings has been swift. In 2025, only 7% of global CEOs saw India as a top destination for capital allocation, placing it fifth. That figure has now jumped to 13%, pushing India into joint second place.
About 77% of Indian CEOs expect economic growth in India to improve over the next 12 months, well above the 55% figure for global CEOs in their own territories. This domestic optimism has remained consistently high, inching up from 76% a year earlier.
However, the report also stated that Indian CEOs are far more cautious about the global economy. Only 45% expect global growth to improve, compared with 61% of global CEOs.
Revenue confidence sets India apart
Around 57% of the India CEOs say they are “very or extremely confident” about revenue growth over the next 12 months, nearly double the global average of 30%. Over a three-year horizon, confidence remains strong at 55%, compared with 49% globally.
India’s short-term revenue confidence also outpaces major economies such as the US, UK, China and Germany.
As per the report, India has become the second-largest private equity and venture capital market in the Asia-Pacific region, attracting nearly 20% of the region’s private capital in 2022. For India-based CEOs looking overseas, the preferred destinations for their own investments remain the US, UAE and UK, indicating a two-way flow of capital even as India draws increasing attention from global investors.
Growth powered by reforms and demand
The report further revealed that the economy is projected to grow at 7.4% in FY26, supported by a manufacturing push and higher investment.
India has also seen its long-term sovereign credit rating upgraded to ‘BBB’, its first improvement in 18 years, the report added. Other policy reforms that have strengthened business confidence, according to the reforms, are production-linked incentive schemes, GST enhancements, and proposed labour codes.
Furthermore, the report added that the Jan Vishwas (Amendment of Provisions) Bill, 2025, which seeks to decriminalise 288 provisions and amend 355 others, is aimed at improving ease of doing business and living.
A large domestic market as a strategic edge
Lastly, the report added that CEOs point to India’s consumption-driven middle class and the sheer scale of its domestic market as key advantages. Unlike export-dependent economies, India’s growth is supported by internal demand, offering a cushion against global volatility, as per the report.