Study says India to be among top 4 investment destinations by 2014

[K.Karthik Raja]

Study says India to be among top 4 investment destinations by 2014
Thursday, Jun 19

NEW DELHI - India is likely to be among top four corporate
investment destinations in the world by 2013-14, overtaking U.K.,
Germany and France, a study by KPMG said today.
Currently, India is tied with Brazil as the seventh most
attractive
corporate investment destination behind U.S., China, U.K., Germany,
Russia, and France, the study among 300 senior corporate investment
strategists in 15 countries said.
According to the study, the percentage of companies expecting to
make significant investment in India in the next five years has risen
to 18% from 10% in 2008-09.
This year U.S. leads by a long way with 27% of the investors
planning significant investment in the country, followed by China with
17%. "In five years' time, however, China is expected to head the
table, with 24% planning an investment, followed by the U.S. with
23% and Russia with 19%," the study said.
"Fourth, and the biggest winner overall, will be India with 18%, a
rise
of 8%."
There is a shift in sentiment away from the U.S. and much of this
is likely to go to BRIC (Brazil, Russia, India, China) economies, the
tax and advisory firm said.
According to the study, the most popular attributes for choosing
investment destinations were access to new customers followed by
political and legal and regulatory stability and predictability.
India is likely to do well in industrial products and
manufacturing, it
said. "Respondents expect India to do particularly well in industrial
products, where it will displace the U.S. to take second place behind
China,and in manufacturing, where it is expected to lead the world in
terms of investment, with 25% of corporates expecting to invest five
years form now," it said.
But in contrast to other BRIC countries, 64% of the investment
into India is expected to come from new entrants in the country.
India is also likely to overtake Japan, France and Russia in
influence,the report said.
"In term of influence, India is expected to achieve the remarkable
feat of overtaking Japan, France, Russia and Brazil in the ranks of
the most influential countries, with a rising influence in all
sectors, particularly business and consumer services, IT/telecom and
manufacturing," it said.