• Even as the COVID-19 pandemic and geopolitical conflict resulted in investor uncertainty, India has the potential to attract Foreign Direct Investment (FDI) flows of $475 billion in the next five years due to the focus on reforms and economic growth, according to a report by the Confederation of Indian Industries (CII) and EY.
  • The report noted that FDI in India has seen a consistent rise in the past decade, with FY 2021-22 receiving FDI inflow of $84.8 billion despite the impact of the pandemic and geopolitical developments on investment sentiment.
  • “India is seen as an emerging manufacturing hub in global value chains, as a growing consumer market and as a hub for ongoing digital transformation.
  • In addition, in a rapidly changing geopolitical environment, India’s large and stable democracy and consistent reform measures are recognized by the MNCs (multinational company).
  • The report titled, Vision — Developed India: Opportunities and Expectations of MNCs, added that 71% of MNCs working in India consider the country an important destination for their global expansion.
  • The optimism is driven by both short-term as well as long-term prospects. “A majority of MNCs feel that the Indian economy will perform significantly better in 3-5 years backed by 96% of respondents being positive about overall India’s potential
  • The confidence in India’s potential, the report said, stems from strong consumption trends, digitisation and a growing services sector, along with government’s strong focus on infrastructure and manufacturing.
  • The Indian government’s consistent efforts to reduce regulatory barriers is also stoking the positive perception among MNCs


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