India has been ranked as the most attractive investment destination globally (followed by Brazil and China) by the latest Capital Confidence Barometer report released by consulting firm EY. The firm undertook a survey of around 1,600 executives of large companies across 70 countries. Executives have cited initiatives taken by the Government of India to open up a number of sectors to foreign direct investment (FDI) and rupee depreciation as the prime drivers favouring India. The Government has taken a number of initiatives to liberalise investment in sectors like telecom, insurance defence and retail.
The Cabinet Committee on Investments, which was set up early this year, has cleared pending projects worth over Rs 3 lacs crore so far. According to the report, sectors that are expected to witness heightened M&A activity in India include automotive, life sciences, consumer durables and technology, which are most likely to come from the US, France and Japan. The survey also reveals that Indian companies are characterised by a sustained focus on job creation and cost control. The optimism expressed by global investors in India indicates investment activity gaining momentum in the coming quarters.