India ranked at 8th position in the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index. In 2016 edition of this index, India ranked at 9th position. US has topped A.T. Kearney Foreign Direct Investment (FDI) Confidence Index for the fifth year in a row.
Factors Influencing Investors’ Confidence:
According to the report, this year, governance and regulatory issues weighed heavily on investors’ mindset while picking up the investment destination.
- This marks a divergence from previous year, wherein market size and cost of labour were the top factors.
- Indian Govt’s focus on reforms to bring in transparency and efforts to improve ease of doing business has made it an attractive destination for foreign investors. The index reflects an improvement in investor confidence in India over last two years. Among the emerging economies, China and India are the top two performers
Top 10 Countries on 2017 A.T. Kearney Foreign Direct Investment (FDI):
Rank Country 1st United States 2nd Germany 3rd China 4th United Kingdom 5th Canada 6th Japan 7th France 8th India 9th Australia 10th Singapore
Other Takeaways from 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index:
Asia-Pacific region continues to be investors’ favourite geographical area. However most of them consider escalation in geopolitical tensions as a wild card which can disrupt the existing trend.
- 31 % respondents were more optimistic about India’s economic outlook over the next 3 years.
- Vikas Kaushal – Partner and Head of India, AT Kearney has mentioned that reform measures introduced by current NDA Govt. including goods and service tax (GST) have improved the investment climate in India.
- More than 50% respondents have mentioned that successful implementation of GST will trigger their decision to increase their investment in India.
- India attracted highest amount of Greenfield investments in 2016, from which a major chunk went into manufacturing sector.
- 70% respondents are planning to maintain or hike their investments in India in coming years.
About A.T. Kearney Foreign Direct Investment (FDI) Confidence Index:
- This index reflects the perception of foreign investors towards particular countries in backdrop of political, economic and regulatory trends.
- The index is prepared on basis of responses received through primary survey of senior executives of world’s leading companies. All participating companies have more than $500 million annual revenue.