India leads the pack as the most tempting investment destination

Here’s another boost to India’s emerging global economic status- the International consultancy firm EY (formerly known as Ernst & Young) ranks India above China, and even the US, as an investment destination as judged from a global survey conducted by the firm. EY notes Brazil as the second hotspot, while the behemoth Asian economy of China takes the third spot in this coveted list. EY cites India’s relaxed regulations with regards to Foreign Direct Investment (FDI), and a sharp depreciation in the value of its currency as the express reason for this monumental shift in perception.

The other runners in this list include Canada (4th), US (5th), South Africa (6th), Vietnam (7th), Myanmar (8th), Mexico (9th) and Indonesia (10th). Indian companies are facing large debt piles and are directly bearing the brunt of the recent economic slowdown in India. This scenario has made the prospect of investing in India, a profitable concept for foreign companies. EY estimates that the US, France and Japan will likely emerge as the TOP three investors to invest in India.

These findings are part of EY’s trusted Capital Confidence Barometer report that is based on a comprehensive survey of over 1,600 Senior Executives from large scale companies across 70 countries. In India, the automotive, technology, life sciences and consumer products sectors have emerged as the ones that will see large scale investments, as well as the highest level of anticipated deal making. Over 38% of those taking the survey felt that the volumes pertaining to these sectors will improve over the course of the next 12 months in India. EY notes that the global perception of India, as an ideal target for investment, hasn’t altered drastically despite the economic problems the country has been experiencing. Countries such as the UK and Germany are some of the many economies whose trust in India as an investment destination has altered and solidified through this duration. Expect the same scenario from other global economies. India is indeed, looking at a greener pasture.