Reform, economic growth focus to boost FDI opportunities to $475 bn in 5 years: EY-CII report

Most multinational companies (MNCs) already present in India see the country as an alternative for their China+1 strategy, with their optimism driven both by short-term as well as long-term prospects, according to a CII-EY survey report.

The survey, 'Vision 'Developed India' Opportunities and Expectations of MNCs', conducted jointly by EY and CII showed that 71% of MNCs considered India to be an attractive investment destination for their global expansion. An overwhelming 96% of the respondents were positive about the Indian economy in the long run, it said.

The MNCs also said the Indian economy would perform significantly better in 3-5 years.


India's focus on reforms and economic growth will give rise to foreign direct investment (FDI) opportunities of $475 billion in the next five years, it said.

FDI in India has risen consistently in the last decade, with an FDI inflow of $84.8 billion in FY22 despite the impact of the Covid-19 pandemic and geopolitical developments on investment sentiment.

MNCs appreciate the impact of GST, the government's digital push in various spheres, and transparency in taxation, among other reforms.

"It (India) is seen as an emerging manufacturing hub in global value chains, a growing consumer market, and a global leader in the digital transformation of government and private sectors alike," said Sudhir Kapadia, partner - tax and regulatory Services, EY India.

According to the survey, the top expectations from the government include continuity in reforms to enhance ease of doing business, faster implementation of infra projects, early closure of free trade pacts and GST reforms.