India has the potential to attract annual FDI between $120 billion and $160 billion by 2025: CII-EY Report on FDI in India – Now, Next and Beyond.
According to the CII-EY survey on “FDI in India – Now, Next and Beyond, Reforms and opportunities” India can expect to attract US$120 billion to US$160 billion of FDI annually by 2025 if it manages to increase the FDI to GDP ratio between 3% to 4% range by 2025. This can aid in bringing back India’s GDP growth rate to 7%-8% range. The above growth will be stimulated by the recent structural reforms, raising of the FDI limits in multiple sectors and the Atmanirbhar Bharat strategy of the Government of India.
The report, based on a CII-EY Survey to gauge the market sentiment amongst the Indian as well as non-Indian companies, notes that India has emerged as one of the top three choices for overseas investments in the next 2-3 years. About 50% of respondents see India amongst the top three economies or leading manufacturing destinations of the world by 2025. The respondents have pinned down market potential, skilled workforce, and political stability as the top three reasons to make India their favoured destination.