India grabs third spot in global tech investment destinations list

New Delhi: India retained the third spot in consultancy EY .s list of most attractive investment destinations for technology transactions.

EY's 14th biannual Global Capital Confidence Barometer (CCB) - Technology report, based on a survey that covered 182 technology executives around the world including senior level executives, named the US, the UK , India, China and Germany as the top five destinations for technology investment in that order.

The report said in the current global economic scenario, companies have been revising their strategies to enhance revenues and protect earnings.

"While 84% of tech executives see a stable or modestly improving economy, there has been a 38-point drop (to 1%) in those projecting strong improvement only six months ago.

Economic and political instability, including the impact of the strong US dollar and weak oil prices , have tempered optimism," it said.

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Technology deals volume rose 2% from a year ago in the first quarter of 2016 to 1,002 deals, according to EY.

Globally, there is a shift towards shared infrastructure, and that is the main area of investments in India, said Ashish Basil, partner - transaction advisory services, EY India.

"India's reputation as an IT and IT-enabled services powerhouse has received a great impetus with the heightened velocity of the global digital transformation," he said.

"India's domestic technology market is picking up and there's a marked improvement in our investment climate."

More recently, the emergence of cloud computing has become an attractive bet, with investments in cloud computing infrastructure in India touching $1 billion and major players becoming increasingly active in this space, he said. However, India scores high on being a technology hub.

"India's strength is definitely in its ability to adopt new technology. Shared infrastructure is domestic market focussed, but people also make investment for exports ," he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.