News from the Indian economy: Global companies confident to invest in India, 44% investment in business planning: Deloitte
About 44% of the 1,200 business leaders surveyed globally are planning additional or first-time investment in India, according to Deloitte -India’s FDI Opportunity survey – a global survey of multinational business leaders to assess their perception of India.
“Almost two-thirds of the first investments will be made over the next two years and India’s business perceptions are better in the US and UK than in Singapore and Japan,” Deloitte survey says .
The survey, conducted at the height of the second wave of the Covid-19 pandemic in India this year, found that a large portion of international business leaders remain confident in the short- and long-term prospects of the ‘India and are preparing plans to make initial investments in the country.
Accompanying Deloitte analysis shows India will need US $ 8 trillion in gross capital formation (new creative assets) to grow into a US $ 5,000 billion economy by fiscal year 2027. Based on past trends, India will need at least $ 400 billion, cumulatively, over six to eight years, in FDI, according to the report.
“After the challenges of the past 18 months, the Deloitte survey is a positive validation of the underlying strengths of the Indian economy, particularly its appeal to foreign investors. We believe the outlook can only improve due to the improved ease of doing business in India which includes tax breaks and other reforms. These positive steps further convince me that India is moving towards its ambition of a US $ 5,000 billion economy, ”said Punit Renjen, CEO of Deloitte Global.
According to the survey of new investors, almost two-thirds plan to invest in India in the next two years. When asked to identify the sectors most likely to see new investment in India, utilities (energy infrastructure) led the way (57%), mirroring India’s plans to dramatically increase its capacity in renewable energy, while financial services (49%) and healthcare (48%) is also ranked well.
“Directing FDI to capital intensive sectors should be the goal as it is essential for the country’s gross capital formation as well as for establishing its position as a global trading partner. As global organizations seek alternative destinations for manufacturing and India is well positioned to capture a disproportionate share of the change, the country must continue to implement reforms and initiatives that drive improvement, build confidence. and the competitiveness of the Indian economy, ”said N. Venkatram, CEO, Deloitte India.