Delhi: India''s popularity as an international investment
destination appears to be increasing fast. According to
a survey by Ernst and Young, India is one of the top three
destinations attractive to foreign investors, along with
China and the United States.
February and March 2007, the survey asked 809 managers
from various industries in European, American and Asian
firms about their investment preferences.
survey ranked investment preferences on the basis of market
and access, labour and productivity, fiscal, legal, environmental
and regional issues. The United States was found to be
the second-most attractive country, finding favour with
33 percent of the respondents.
to the survey, 26 per cent of investors had cited India
as being among their top three preferences in 2007, up
from the 11 per cent in 2004 even as China continues to
be the most attractive destination for foreign investment,
the survey pointed out.
percent cited China as one of their top three preferred
business locations in 2007, up from 41 per cent in the
2006 survey. They said they were drawn to China because
of its low labour costs, more competitive rates and higher
country''s infrastructure, quality of research and development,
workforce education and political stability were cited
as major advantages.
the survey revealed that China still lags behind in quality
of workforce. Only four per cent of those surveyed said
it is the most attractive country in terms of its labour
addition, only four per cent of respondents found China
the most attractive economy in terms of research and development
availability and quality, as opposed to 43 per cent for
Europe and 27 per cent for North America.
from India and China, the other two "BRIC" countries
-- Brazil and Russia - featured less prominently in terms
of investor interest.
Russia''s abundant energy supplies, internal political
uncertainties seem to deter investors. Similarly for Brazil,
the considerable efforts by the government to secure macroeconomic
stability have failed to convince corporate decision-makers.