India a Preferred FDI Spot for Euro Zone

Posted by Reading Time: < 1 minute

Jun. 13 – Despite several obstacles, India continues to be among the one of the preferred destinations for foreign direct investment (FDI) due to its elevated financial expansion, according to the survey of 800 executives by consultancy firm Ernst & Young (E&Y).

In E&Y’s Ninth Annual European Attractiveness Survey, Mumbai and New Delhi had among the highest probabilities of producing the next big IT players in the future. Around 8 percent of respondents named Mumbai and 4 percent named New Delhi as the most promising city. In the section of most attractive markets for investment in the next three years, India ranked fifth with 17 percent of the respondents indicating that the country would be a profitable economy for business expansion. The Indian economy grew by 8.5 percent in 2010-11, up from 8 percent in the previous fiscal year.

The survey also found that Asian countries find Europe to be a good investment target, with India ranking 11th among top global investors to the continent.
According to the survey, overseas investors are not discouraged by regulatory issues to invest in India. India’s perceived specialization as a low-cost business process outsourcing center continues to appeal to investors across the globe.

This suggests that while FDI fell in 2010, investors are not discouraged by present regulatory issues when asked to rank India’s attractiveness.

For investors, the combination of skilled labor, technologically equipped force, and a capacity for effective innovation to develop products with global appeal are some of the main factors. One of the reasons for this response is India’s competitiveness and its stability. India did not crumble during the Euro crisis as well as during the recent recession.