India attractive destination for investments with highly skilled workforce: Deloitte
A survey by Deloitte, which questioned 1,200 business leaders of multinational corporations in the US, UK, Japan and Singapore, found that India remains an attractive destination for investments. The country scored highly for its skilled workforce and prospects for economic growth, as per the survey.
The report identified seven capital-intensive sectors which India can target to attract greater FDI -- textile and apparel, food processing, electronics, pharmaceuticals, vehicles and parts, chemicals and capital goods. These sectors collectively contributed $181 billion of merchandise exports in 2020-21.
The survey found that these seven sectors have the necessary potential, opportunity, and capability to show quick results and set a global precedent. It said more business leaders, especially in Japan, are making investments in India for access to the domestic market, rather than using India as a springboard for exports.
The survey also said that India has the strongest positive perception in the US when compared to markets such as China, Brazil, Mexico, and Vietnam. "The US and UK business leaders expressed greater confidence in India's stability," it added.
In FY21, FDI inflows, including equity, re-invested earnings, and capital, amounted to a record $81.72 billion, 10 per cent higher than the previous financial year. According to the United Nations Conference on Trade and Development (UNCTAD), the Indian information and communication technology and construction sectors were large recipients of FDI. It made India the fifth-largest recipient in the world in the past year.
The report, however, flagged that the record FDI has not contributed proportionately to India's capital formation and GDP. "While foreign investment inflows into India have been consistently rising over the past five years, they have not contributed proportionately to the country's capital formation and GDP."