KPMG: India preferred over US, Japan for foreign investment
India is likely to see the highest growth in foreign investments and become the world leader for investment in manufacturing, according to a survey by KPMG, which is a global network of professional firms providing business advice.
The study says that while 10% of the 300 multinationals surveyed expect to invest in India at present, around 18% want to invest in the country in the next five years.
"It is the biggest gainer among BRIC (Brazil, Russia, India and China) countries," said KPMG India chief executive officer Russell Parera.
"A significant amount of investment in India in the next five years is expected from first-time investors," Parera said.
The survey was conducted in 15 countries. Corporate investment strategists were asked where they planned to invest in the next 12 months and five years. The results show a move away from investments in the United States, Japan, Singapore and the United Arab Emirates, and a big increase in flows towards the BRICs.
However, China is likely to lead the pack in investment intentions over the next five years, with around 24% of respondents planning an investment there. China was followed by the US (23%) and Russia (19%). India---fourth with 18%--- has emerged overall winner with the highest increase of 8%.
Respondents see the US, the UK and Germany as popular investment destinations for the next five years, while around 21% of the corporates expect the subcontinent to be dominant for the same period.
India has overtaken France (14%), Russia (13%), Japan (10%) and Brazil (9%).
Interestingly, apart from India, around 71% of investors are not making an entry into the countries of their choice. They already have investments there. Around 42% are planning to use profits from existing investments in the country to expand their operations. In contrast to other BRIC countries, 64% of investments in India next year is expected to come from first-timers.
Respondents feel China will become the world leader in mining, industrial production, information technology and telecom.
Sue Bonney, head of tax for KPMG's EMA region, said: "A majority of the people surveyed saw the next five years as a return to more normal patterns of investment. This, after a period when the US had a disproportionately high share of global investment funds."
Source: - KPMG: India preferred over US, Japan for foreign investment
India is likely to see the highest growth in foreign investments and become the world leader for investment in manufacturing, according to a survey by KPMG, which is a global network of professional firms providing business advice.
The study says that while 10% of the 300 multinationals surveyed expect to invest in India at present, around 18% want to invest in the country in the next five years.
"It is the biggest gainer among BRIC (Brazil, Russia, India and China) countries," said KPMG India chief executive officer Russell Parera.
"A significant amount of investment in India in the next five years is expected from first-time investors," Parera said.
The survey was conducted in 15 countries. Corporate investment strategists were asked where they planned to invest in the next 12 months and five years. The results show a move away from investments in the United States, Japan, Singapore and the United Arab Emirates, and a big increase in flows towards the BRICs.
However, China is likely to lead the pack in investment intentions over the next five years, with around 24% of respondents planning an investment there. China was followed by the US (23%) and Russia (19%). India---fourth with 18%--- has emerged overall winner with the highest increase of 8%.
Respondents see the US, the UK and Germany as popular investment destinations for the next five years, while around 21% of the corporates expect the subcontinent to be dominant for the same period.
India has overtaken France (14%), Russia (13%), Japan (10%) and Brazil (9%).
Interestingly, apart from India, around 71% of investors are not making an entry into the countries of their choice. They already have investments there. Around 42% are planning to use profits from existing investments in the country to expand their operations. In contrast to other BRIC countries, 64% of investments in India next year is expected to come from first-timers.
Respondents feel China will become the world leader in mining, industrial production, information technology and telecom.
Sue Bonney, head of tax for KPMG's EMA region, said: "A majority of the people surveyed saw the next five years as a return to more normal patterns of investment. This, after a period when the US had a disproportionately high share of global investment funds."
Source: - KPMG: India preferred over US, Japan for foreign investment