India remains attractive for FIIs: Ficci

new delhi: despite the economic slowdown, india is still a profitable market for foreign investors operating in the country, the ficci fdi survey 2002 says. performance of foreign investors remained satisfactory with 61 per cent reporting profits or breakeven. while 51 per cent of the investors showed their keeness towards expanding operations further, about 70 per cent cited political stability in the country as one of the critical factors determining future fdi inflow, the survey says. nearly 70 per cent of the respondents, out of about 385 foreign companies having a turnover in the range of rs 10-850 crore surveyed by ficci, gave high weightage to political stability citing it as one of the critical factors for future fdi flows. however, foreign investors have shown a negative perception about economic growth conditions in the country as also about regulatory framework in comparison to last year''s survey. addressing reporters after unveiling the survey report, ficci secretary general said: though the negative shift has not yet adversely affected the actual performance of foreign investors or their future plans, the ground level hassles and market conditions need to be remedied urgently in order to sustain and improve fdi inflows. the survey points out that foreign investors achieved capacity utilisation in the range of 50-75 per cent which was fairly positive since most of them were new entrants operating in an environment of economic slowdown. about 93 per cent of the foreign investors, including companies like matsushita, de beers, daimlerchyrsler, honda siel, ei dupont, ford india, international bestfoods, siemens, eli lilly, showed a marked improvement over the last year, saying handling of approvals at the central level is good to average and fund flow mechanism was effective. there is negative shift in the companies'' perception of states, attributed to ground-level hassles and basic amenities. the survey also highlights the need for rationalisation of regulations on taxation and labour front, and stresses on an image building exercise. about 43 per cent of the companies considered india as a ''good to average'' investment decision vis-a-vis other countries, attributed to factors like terrorist activities and ground-level hassles leading to slower growth conditions.

India remains attractive for FIIs: Ficci

Despite the economic slowdown, India is still a profitable market for foreign investors operating in the country, the Ficci FDI Survey 2002 says.

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