India rated 8th on Global FDI Confidence Index

April 28, 2017

India has jumped one spot to rank number 8 in this year's A.T Kearney FDI (Foreign Direct Investment) Confidence Index. For the second time in a row, India appears in the top 10.  In 2016 version of this index, India ranked at 9th position. USA has topped AT Kearney Foreign Direct Investment (FDI) Confidence Index for the fifth year in a line. The other countries who made it to the top five are Germany, China, United Kingdom and Canada.

“Investors see India as a vast and diverse up and coming market with plans to increase investments there over the near to medium term. Reform efforts by the current government have improved the country’s investment environment. This includes the national goods and service tax (GST) reform, the largest non- direct tax reform in India in recent years,” said Vikas Kaushal, Partner and Head of India at AT Kearney.

The UK based AT Kearney in the index stated that investors are gaining more confidence in India over the last two years, making it one of the top two emerging market performers on the FDI Index.

According to the report, governance and regulatory issues made up 7 of the top 10 factors that were considered strongly by the investors while choosing on an investment destination. This is in contrast from previous year in which market size and cost of labor were the top factors for investors.

In this year’s review, 31% of the respondents said they were more confident and positive about India’s economic position over the next three years compared to a year ago. According to Kearney, over half of the investors that were surveyed for the index said a successful GST execution would cause them to increase their investment in India. Around, 70 percent of the respondents plan to maintain or increase their FDI in India in the coming years.

The Index is yearly study of how economic, regulatory and political changes will possibly affect FDI inflows into countries in the coming years. India has the world’s fastest-growing major economy, and the government is seeking to loosen FDI regulations to support Prime Minister Narendra Modi’s “Make in India” initiative.

 

April 28, 2017

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