India has been named the world’s most favored market for investment, in a recent Ernst & Young poll. 32% of the 505 executives questioned favored the Indian market. China came second with 15%. Southeast Asia, Brazil and North America followed.
The survey was titled “Ready, Set, Grow”. According to its findings, manufacturing is leading investment plans in India. Most investors seemed optimistic about the manufacturing sector. 62% of the respondents said they would invest in manufacturing, while 42% said they were planning investments in the services sector.
By 2020, many investors see India becoming a global manufacturing force. 35% of the respondents said they feel India will become the world’s leading destination for manufacturing, which is up from 24% in the 2014 survey. Last year, Prime Minister Narendra Modi gave a call to the world saying “Make in India”. 55% of the respondents said they were aware of this campaign. Prime Minister Modi has been busy this year traveling throughout the world, asking business to come and invest in India.
A heavily-populated country, land is a precious resource in India. It is not available readily for industry in many areas. But that doesn’t seem to bother the global investment community. India’s notorious red tape, complex investment rules, and poor infrastructure aren’t a big obstacle too, according to the findings of this poll.
This survey was conducted across companies in North America, Europe, Asia, and Oceania. Ernst & Young interviewed 505 companies with revenues between $150 million and $2 billion. Those interviewed included chairmen, presidents, strategy directors, investment directors, sales managers, and financial directors.
“There is no doubt that interest in India has increased. Investors increasingly see the potential and understand the fundamentals”, says Mark Otty, Ernst & Young’s area managing partner for Europe, Middle East, India and Africa.
The International Monetary Fund (IMF) has said that India is poised to become the fastest-growing major economy this year, while the other emerging markets are suffering slowdown or recession.