Ernst & Young (EY) survey revealed that India has knocked China off as the world's most attractive investment destination. Following India is Brazil while China was relegated to the third spot. The US, France and Japan are the top three countries that have poured foreign direct investments or FDI to India from April 2000 to August 2013, based on government statistics. The inflow from United States was valued at Rs 53,673 crore while that from France was Rs 17,718 crore. FDI inflow from Japan during those years was pegged at Rs 71,870 crore.
EY's ninth bi-annual Capital confidence barometer was taken from a poll of 1,600 senior executives in over 70 countries. The results revealed that investors continued to hold a long-term confidence in India as an attractive destination for investment. This was also due to the sharp depreciation of the Indian currency and the opening of various sectors of the country to foreign direct investments. As a result, opportunities are present for foreign investors seeking to get a chunk of the Indian market. The technology, automotive, consumer products and life sciences sectors are among those where the most deals can be expected.
Thirty-eight percent of the survey respondents believed that the volumes of mergers and amalgamations in India will grow in the next 12 months. Thirty percent believe that it will stay the same.
EY Transaction Advisory Services National Leader & Partner Amit Khandelwal said that the investor outlook for the country is still positive despite the challenges recently faced by the Indian economy. He added, "At the same time, the improved condition of the world economy has helped increase confidence amongst deal makers, prompting them to take a bolder stance toward executing transactions. Also, the Fed's reassurance on not pulling back stimulus in the near term has boosted confidence in the board rooms."
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