India continues to remain one of the attractive destinations for foreign investments despite a challenging business environment, according to the latest 2014 survey by global advisory firm EY (formerly known as Ernst & Young).
The global consulting major in its survey found out that the foreign investors continue to consider India - the fourth-largest recipient of FDI in terms of projects started in 2012 - as an attractive destination because of competitive and skilled labour force along with lucrative domestic market.
The survey of 502 global executives (from companies with international presence) showed that more than half (53.2%) of the respondents were considering increasing their presence in India.
Of the respondents who are looking to invest in India, the majority (57.9%) are planning to expand their operations.
Rajiv Memani, country managing partner at EY India and EY global chair of emerging markets, believes that in the short term investors are likely to consolidate their existing presence in India.
“2014 will be decisive for new players as the election results come in and expectations are formed in terms of sustaining the pace of reforms and deregulation,” he said.
The survey showed that service sector related to technology media and telecom continues to remain the most attractive sector to investors with nearly 30% of respondents rating it the most attractive in coming two years, followed by infrastructure and industrial sectors.