Reaching towards its true potential - EY's 2011 India attractiveness survey

  • Share

Foreign investors see the huge long-term growth possibilities that India presents, according to our survey. This is first of a series of surveys, based on an original two-step methodology that reflects India’s attractiveness for foreign direct investors.

The growing corporate interest in India is explained not only by the country’s economic growth potential, but also by perceptions about how the country will change as its GDP grows over the next decade.

In late 2010, EY interviewed more than 500 global business leaders about the potential of the Indian market. A large majority believe that, as early as 2020, India will become a global leader in education, R&D, innovation, and as a producer of high value-added goods and services.


 

Rajiv Memani Rajiv Memani, Country Managing Partner at EY India, said, “With economic growth GDP projected to surpass 8% annually and the number of people in the Indian middle class set to treble over the next 15 years, with a corresponding impact on disposable income, domestic demand is expected to grow exponentially. India’s young demographic profile also helps it provide an increasingly well-educated and cost-competitive labour force. These factors put India in a good position to attract an increasing proportion of global FDI.”


 

As the world’s second-fastest growing economy with a compelling demographic advantage and availability of high-quality talent, India is today widely accepted as an attractive market for foreign direct investment (FDI).

Further, deregulation of the economy starting 1991 has reduced entry barriers in most sectors.

Today, as globalization gathers momentum, the BRIC economies have emerged as the frontrunners and are increasingly regarded as an essential element for future success.

So, questions arise about India’s position in this map.

  • How does India compare with the other emerging economies?
  • Is there a shift happening in geographies which have traditionally been directing FDI into India?
  • Are their new industries emerging where the country enjoys a competitive advantage?
  • Is its cost competitiveness a big advantage?
  • Are investors mostly looking at greenfield investments or expansions?
  • Do they prefer a joint venture to an acquisition and what is the average timeframe which most investors are looking at?

Find the answers to these questions and more in the EY India Attractiveness Survey 2011. In addition, read first-hand insights from business leaders and government about doing business in India.