MNCs warm up to investing in India: CII
India has emerged as one of the top three choices for overseas investments, according to a survey by CII and EY.
Over two-thirds of MNC respondents listed India as the first choice for future investments and 25 per cent, who represent non-Indian HQ MNCs, view India as the first choice for future investments.
The survey shows that more than 80 per cent of the respondents and 71 per cent of the non-Indian headquartered respondents plan to make investments globally in the next two to three years. Of them, about one-third are planning to invest more than $ 500 million.
Almost half saw India as among the top three economies or leading manufacturing destinations of the world by 2025. They listed market potential, skilled workforce and political stability as the top three reasons to make India their favoured destination. The subsidiary factors were cheap labour availability, policy reforms and availability of raw materials.
“The CII-EY survey results strongly indicate that India will be the next global investment hotspot,” said Chandrajit Banerjee, CII Director General.
But the companies wanted infrastructure development, faster clearances, and proper implementation of new labour laws as well as tax reforms.