New Delhi: About 44% of 1,200 business leaders surveyed throughout the US, Japan and Singapore plan additional investments or for the first time in India and nearly two-thirds of the first investment will be carried out in the next two years, according to the survey conducted by the Deloitte consulting company .
The survey, carried out during the peak of the second wave of Covid-19 pandemic in India this year, found that most international business leaders remained confident in the prospects of India and the long-term India and were ready to make additional and investment first time in this country.
Analysis by Deloitte shows that India will require the formation of gross capital of $ 8 trillion (new Greenfield assets) to become an economy of $ 5 trillion by FY2027.
Based on past trends, India will require at least $ 400 billion, cumulatively, more than six years, in FDI.
When asked to identify the sectors most likely to see the new investment utility (energy infrastructure) lead the way (57%), reflecting India’s plans to significantly foster renewable energy capacity, while financial services (49%) and health services (48%) are also ranked tall .
India has the strongest positive perception in the US when compared to markets such as China, Brazil, Mexico and Vietnam.
Given us and strong English historic bond with India, US and British business leaders expressed greater belief in Indian stability.
However, respondents from Japan and Singapore are currently seeing Vietnam as investment destinations for their choice, the survey shows.
“After the challenges of the last 18 months, this survey is a positive validation of the basic strength of the Indian economy, especially its attractiveness for foreign investors.
We believe the prospect can only be better because of the ease of Indian business, which includes fiscal benefits and other reforms.
Steps This positive further convinced me that India moved towards its ambition of the economy of US $ 5 trillion, “said Renjen, Deloitte Global CEO cited with a statement from the consulting company.
Although there are significant crossovers, more business leaders, especially in Japan, are investing in India for access to the domestic market than using India as a stepping stone for export, surveys show.
It was said that even though recent reforms increased the ease of doing business in India, consciousness among investors remained low.
Business leaders in Japan (16%) and Singapore (9%) are at least aware of initiatives such as digitizing customs cleansing and incentives related to production for producers.
Thus, India is considered a more challenging environment to do business compared to China and Vietnam.
About 75% of business leaders say they are more willing to invest in India after being made aware of government, incentive, and reform programs, according to Indian surveys can target greater FDI into seven sectors & clothing, greater food processing industry, electronic goods , Pharmacies, Vehicles & Parts, Chemicals & Flames, and Capital Items – which have contributed $ 181 billion export of merchandise in the fiscal year 2020-21.
The investment is said to help increase the growth of the export of these sectors by six times to US $ 1,075 billion by FY2026-27.