Good news for Indian businesses and consumers as according to a survey report by CII-EY FDI, India is the first choice for future investments for more than two-thirds of the MNC respondents.
The report also claimed, "About 30 per cent of companies are planning to invest more than $500 million. About 50 per cent of the respondents see India among the top three economies or leading manufacturing destinations of the world by 2025,"
The respondents sang praises for the nation with picking market potential, skilled workforce and political stability as the top three reasons to make India their favored destination.
In addition to the above, there are other factors that contribute to India as the preferred destination. These include policy reforms, cheap labor availability, and availability of raw materials, the report continued.
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"Recent reforms in the country such as corporate tax cuts, ease of doing business measures, simplification of labour laws, FDI reforms, and focus on human capital have emerged as the top drivers for fresh investments," the report said.
"Non-Indian HQ MNCs have also opined that major investment in infrastructure and 100 Smart cities as well as financial sector reforms will also help establishing India as a favorable destination for FDI," it said.
The participants also took the opportunity to bring out their concerns, their recommendations.
As per the report: "Infrastructure development, faster clearances, and proper implementation of the improved labour laws and labour availability as the top three issues that the companies want the government to focus on, followed by R&D and innovation, and tax reforms.
"In terms of trade policy reforms, investors would like to see a faster turnaround time for exports and imports, improved cargo handling, and trade facilitation measures to be in place."