India amongst the top 3 destination for future investments: CII-EY FDI Survey

23 October 2020: India has emerged as one of the top three destinations for overseas investments in the next 2-3 years, according to the FDI survey released by the Confederation of Indian Industry (CII), in association with EY. More than two-thirds of the MNC respondents, India is the number one choice for future investments. 25% of the respondents, who represent non-Indian HQ MNCs, view India as the first choice for future investments. The survey shows that more than 80% of all the respondents and 71% of the non-Indian headquartered respondents plan to make investments globally in the next 2-3 years. About 30% of companies are planning to invest more than USD 500 million. About 50% of respondents see India amongst the top three economies or leading manufacturing destinations of the world by 2025.

Other key factors which contribute to the attractiveness of India as an investment destination include cheap labor availability, policy reforms, and availability of raw materials. 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 CII-EY FDI survey on the theme, ‘How can India step up its game?” has been brought out to gauge the market sentiment amongst the Indian as well as non-Indian MNCs.

The survey has also brought out some key recommendations sought by the respondents. 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.