Multinational companies optimistic about India’s growth prospects, CII sh survey

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Multinational companies operating in India remain optimistic about the country’s growth prospects amid global economic uncertainty, according to a CII-EY survey. Foreign direct investment (FDI) in India could reach a total of $475 billion over the next five years, he said.

About 71% of multinationals in India see the country as an important destination for their global expansion, according to the report. He underscored that the time has come for India to move to the next level of economic development, including early closing of free trade agreements, continued reforms to improve the ease of doing business, implementation infrastructure projects and reforms to the taxation of goods and services. .

While 96% of respondents are optimistic about India’s growth prospects and expect it to be even better in the short to medium term (3-5 years), 43% of respondents said that It would be significantly better, according to the report entitled Vision—Developed India: Opportunities and Expectations of Multinationals.

The report says India has seen a steady increase in FDI over the past decade, with FY22 receiving $84.8 billion, despite the impact of the pandemic and geopolitical developments. “Against the backdrop of growth challenges facing the world’s major economies and emerging geopolitical issues, it is heartening to note that multinationals see India as an attractive investment destination and are planning to expand. We are confident that the government‘s continued reform momentum will attract an increasing volume of investment from multinationals and facilitate their greater integration into the national supply chain,” said Chandrajit Banerjee, Managing Director of CII.

The Ministry of Commerce and Industry said on Saturday that India was on track to attract $100 billion in FDI in the current financial year thanks to economic reforms and ease of doing business. . Meanwhile, in the April-June quarter, equity FDI inflows fell 6% to $16.6 billion.

In FY21, infrastructure activities accounted for about 10% of total FDI inflows of $81.9 billion. Investment commitments in the infrastructure sector provide assurance of India’s serious aspirations to provide the best infrastructure and new investment opportunities. Optimism about India’s growth is driven by strong domestic consumption momentum, a growing service sector, digitalization and the government’s focus on manufacturing and infrastructure. Estimated real consumption growth is the third highest behind the United States and China, while the rapidly expanding digital economy is expected to reach $1 trillion by 2025, he added.

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