Global businesses optimistic on India's market potential
With India virtually emerging as the second most preferred FDI destination following China, the global business community is looking at the country as the world's business process and IT services provider with longer term market potential. In these areas, India's highly educated workforce, management talent, rule of law, transparency, cultural affinity and regulator environment are more favourable than China's, AT Kearney's FDI Index said in its latest report.
However, China has pipped India in the fields of manufacturing and assembly. Investors favour China over India for its market size, access to export market, government inccentives, favourable cost structure, infrastructure and macro-economic climate.
According to the report, India has surged ahead of United Kingdom to finish third in terms of investor confidence. The country has overtaken Germany, Poland and Mexico and there is a distinct possibility of nudging past the economic "behemoth" United States as the most preferred FDI destination, it said.
India and China, considered close rivals as emerging economic giants, are also cited by leading CEOs and corporate leaders as the most favoured FDI destinations in the short-term (three years) as well into the future.
The annual report based on responses of executives of the world's largest companies said that for the first time since 2000, 69 per cent of the corporate heads expressed optimism about the global economy against only 10 per cent appearing hopeful last year. (Source: PTI)
October 13' 2004
