EY's 2015 India attractiveness survey

Ready, set, grow

Number one FDI destination

Investors highlight improvements

Rank the three most attractive markets for investment in the next
three years (three possible answers)

India has emerged as the number one Foreign Direct

Investment (FDI) destination in the world during the
1H15, with FDI capital inows of US$30.8b.

Please rate the following parameters for investment in India as very, fairly, little or not
at all attractive. (Percentage of respondents who rated the parameter as very
attractive or fairly signicant)

India

32%
47%

15%

China

38%

12%

Southeast Asia
Brazil

21%

Latin America

3%

18%

Middle East

4%

17%

Western Europe

3%

Northern Africa

Sub-Saharan Africa
Japan
Russia

Commonwealth of
Independent States (CIS)

Can't say

11

3% 10%
3% 9 %
3% 9 %
1% 6%
First mention
Total mentions

Source: EY's 2015 India attractiveness survey (total respondents: 505).

Manufacturing
leads investment
plans

Manufacturing has
regained its share for 2014,
amounting to approximately
46% of FDI capital ows.

FDI capital (share)

2.6
15.1

23.1

45.5

37.0

36.8
2014

2.8

Strategic
Retail
Manufacturing

37.1

What is the nature of the business activity you are

planning in India? (Open-ended question multiple responses)

62%

42%

21%
Sales and marketing

Manufacturing

FDI investment

rise in FDI
investment

145,000

39%

+221%

additional
jobs

Services

Source: EY's 2015 India attractiveness survey (total respondents: 265 with
overseas expansion plans, who are considering entering or increasing
existing operations in India over the next year).

highest ever
FDI capital
per project

82

86

Stable political
and social
environment

FDI capital
increase in
manufacturing

Source: fDi Markets, May and September 2015.

74%
2015

59%
2014

Domestic
market
81

Macroeconomic
stability

Research and
development

72%

76

82

70

69%

68%

How do you see India in 2020?

Labor skills

76

FDI policy

Investors see India speeding up pace toward becoming one world's

top destinations for manufacturing, as well as a regional hub for
operations.

78

Among the top

three growing
economies in
the world

Among the
worlds leading
three destinations
for manufacturing

Ease of doing
business

60%

67%

A regional
and global
hub for
operations

57%

Improvements in 2015

Within six months of its announcement,

55% of our surveys respondents were
aware of the Make in India program.
However, there is a need to create
visibility for the program among
non-established players, as only 10% of
those without a presence in India were
aware of it.

71%

awareness
among
established respondents

69% among those who are aware of

the program are likely to invest in

manufacturing in the next ve years

Source: EYs 2015 India attractiveness survey (total respondents: 234,

established in India: 173.)
Note: The question on awareness of the Make in India program was asked to
respondents from manufacturing-related sectors, with overseas
expansion plans.

37%

29%

35%

24%

9%

21%
2015

2014

Source: EY's 2015 India attractiveness survey (respondents: 250,

asked to half of the sample); EY's 2014 India attractiveness survey
(total respondents: 502).

Source: EY's 2015 India attractiveness survey (total respondents 505); EY's 2014 India attractiveness survey
(total respondents 502).

Make in India program:

positive for manufacturing

Total
awareness

Source: fDi Markets, May 2015.

FDI capital

US$91m

total jobs
created by FDI

Labor costs

+135 %

32 %

55%

Services

2013

rise in
FDI projects

US$25b

1%

37 %

projects

12%

Highlights of
1H15

2014

680

27

10%

North America

Central Eastern Europe

60%

India in 2020:
a promising outlook

Reforms expected to drive growth

Priorities for action

A number of recent government reforms are well received by investors,

who expect them to increase Indias FDI attractiveness signicantly.

In your opinion, what should be the three priority measures

for improving Indias investment climate?

What impact do you think the following recent reforms by the Indian
Government will have in attracting FDI?
(Percentage of respondents who rated the reforms as very
signicant or somewhat signicant)
Investment and administrative reforms
Investment in infrastructure projects and
100 Smart Cities
Schemes on nancial inclusion and Digital India

89%
83%

Legislation for land acquisition

75%

Reforms to permit FDI in insurance and defense

71%

Tax-related reforms
Corporate tax rate reduction from 30% to 25%
in next four years

83

Implementation of Goods and Service Tax (GST)

by 2016

81%

Favorable tax regime for real estate investment

trusts and alternate investment funds

78%

Reduction in tax for royalty and fees for technical

services (FTS)

77

Deferment of General Anti-Avoidance Rules

Source: EY's 2015 India attractiveness survey (total respondents 505).

66%

47%

44%

Improve
infrastructure

Enhance ease of
doing business
and transparency

Streamline
taxation

31%

31%

Simplify
labor laws

Implement
economic reforms

Source: EY's 2015 India attractiveness survey (total respondents 505).

65%

Learn more
Find out whats activating growth in India
Download EYs 2015 India attractiveness survey
at ey.com/emergingmarkets

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