India Is No More the Most Preferred Business Destination

However, while the rest of the economies have been showing steady growth, the Indian economy is still tangled under the economic challenges

 “The prevailing macro-economic environment is a cause of concern. The currency exchange rate situation is not favourable, besides factors like rising credit and input costs. Still, we feel the economy will rebound considering the optimistic consumption ability of Indians,” says Sidharth Kapur, CFO, airports business, GMR Group.

Witnessing these very feeble market conditions foreign investment slipped from $43.4 billion five years ago to $25.3 billion in 2012, instead of Indian government liberalizing FDI in several sectors.

The most badly affected was the auto sector. “In the auto sector, for instance, this means more car sales. But since the environment is negative at the moment, people who want to buy cars or upgrade are waiting for a few more months. This leads to negative consumption for those months,” explains Jnaneswar Sen, senior vice-president (marketing and sales), Honda Cars India.

The data presented by Bloomberg represents that companies raised $230 million abroad in July, the lowest since April 2010 and 84 per cent less than June.

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