Capital deluge to hit India Inc
India is likely to see the highest growth globally in investment in the manufacturing sector over the next five years.
By ET Bureau |
MUMBAI/NEW DELHI: India is likely to see the highest growth globally in investment in the manufacturing sector over the next five years as investors shift focus to emerging economies in the wake of financial turmoil in the US and Europe, a KPMG survey said on Thursday.
About 25% of global corporates who participated in the survey expected to invest in India���s manufacturing sector. Investment in industrial goods sector would also be large, with India expected to displace the US to stand at the second rank after China, it said.
���As investments go global, smart money is increasingly finding its way from the traditional investment destinations of US and Europe to Bric (Brazil, Russia, India, China) countries,��� KPMG India CEO Russell Parera said. ���The recently-recognised India opportunity is reflected in the fact that a significant amount of investment into India in the next five years is expected from first-time investors.���
The survey covered over 300 corporate investment strategists from 15 major economies who were asked where they plan to invest in the next 12 months and in five years��� time. The respondents were also asked which countries they saw as dominant in their sector and which they expected to be dominant in 2013-14.
The survey showed a move away from investments in the US, Japan, Singapore and the UAE, and an increase in flows to Bric economies. About 10% of the companies surveyed expected to invest in India and this number would go up to 18% in five years.
���It is clear that India has the potential to play an even more influencing role in flow of capital and it���s a great opportunity for India to further improve the economic and fiscal climate and proactively attract and retain investments in her growing economy,��� said the KPMG report which was released on Thursday.
Over the next five years, India will move from seventh to fourth in the investment league table by overtaking the UK, Germany and France. The US remains the favourite investment destination for Indian companies. The majority of domestic firms that responded to the survey expected the bulk of Indian investment this year to go to the US, while the Middle East, Singapore and Hong Kong will also see substantial investments from India.
About 25% of global corporates who participated in the survey expected to invest in India���s manufacturing sector. Investment in industrial goods sector would also be large, with India expected to displace the US to stand at the second rank after China, it said.
���As investments go global, smart money is increasingly finding its way from the traditional investment destinations of US and Europe to Bric (Brazil, Russia, India, China) countries,��� KPMG India CEO Russell Parera said. ���The recently-recognised India opportunity is reflected in the fact that a significant amount of investment into India in the next five years is expected from first-time investors.���
The survey covered over 300 corporate investment strategists from 15 major economies who were asked where they plan to invest in the next 12 months and in five years��� time. The respondents were also asked which countries they saw as dominant in their sector and which they expected to be dominant in 2013-14.
The survey showed a move away from investments in the US, Japan, Singapore and the UAE, and an increase in flows to Bric economies. About 10% of the companies surveyed expected to invest in India and this number would go up to 18% in five years.
���It is clear that India has the potential to play an even more influencing role in flow of capital and it���s a great opportunity for India to further improve the economic and fiscal climate and proactively attract and retain investments in her growing economy,��� said the KPMG report which was released on Thursday.
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Over the next five years, India will move from seventh to fourth in the investment league table by overtaking the UK, Germany and France. The US remains the favourite investment destination for Indian companies. The majority of domestic firms that responded to the survey expected the bulk of Indian investment this year to go to the US, while the Middle East, Singapore and Hong Kong will also see substantial investments from India.
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