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Most MNCs keen to invest in India: study
By agencies
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Monday, 18 July 2005, 19:30 IST
NEW DELHI: According to the latest CII-AT Kearney survey, almost 70 percent of multinational corporates have evinced a high likelihood of making additional medium and long-term investments in India.
The investment outlook in the medium-term appears not to be dictated by their current performance in India, with most companies indicating a medium to high likelihood of investment, irrespective of their performance.
The survey indicates that in a comparison with other emerging Asian economies, India is previewed to be at par in terms of FDI attractiveness, even though current performance of MNCs in India compares favorably with their operation in SE Asian countries.
In comparison to China, close to 50 percent of the respondents believed that India is at par or better than China in terms of MNC performance. However, about 75 percent of respondents viewed India unfavorably as compared to China on FDI attractiveness.
The study also revealed that, while India will attract global investor interest due to the sheer size of its economy, there is much more to be done to become investor-friendly and maintain investor interest.
Respondents put forth that bureaucracy, lack of infrastructure and an ambiguous policy framework are specific challenges that adversely impact MNCs operating in India and influence perception of India vis-a-vis other emerging economies.