Skip to main content

Ernst & Young rates India best investment destination, but says 10% non-established players aware of 'Make in India'

By Our Representative
One of the world’s top consultants, Ernst and Young (EY), known for catering to the “requirements” of its clients who include both government and global business players, has rated India as the best investment destination in the world. In a survey carried out among 505 business executives form 28 countries, E&Y has said “A leading 32 per cent of the investors ranked India as the most attractive market this year.”
Titled “EY’s attractiveness survey India 2015: Ready, set, grow”, and brought out ahead of Prime Minister Narendra Modi’s scheduled visit to the United Kingdom (UK) in November second week, EY survey finds that less than half the “decision makers” that of India – just about 15 per cent – considered China as the as the most best investment destination.
This is followed by Southeast Asia 12 per cent), Brazil (5 per cent), North America (10 per cent), Latin America (3 per cent), the Middle East (four per cent), Western Europe 4 per cent, Japan 3 per cent, and Russia 1 per cent. The survey was carried out with the help of business executives, government leaders, and EY professionals.”
The main issues addressed in the survey included whether labour costs, domestic market, macroeconomic stability, labour skills, stable political and social environment, research and development availability, FDI policy, ease of doing business, flexibility in labour law, and so on. 
Impact of India's economic reforms on attracting FDI
An earlier World Bank report, which also ranked India as the best business destination, had specifically mentioned that it had taken the help of the Department of Industrial Policy and Promotion (DIPP), Government of India, for preparing the report. While, the EY report refrains from saying any such thing, two of its top commentators are Amitabh Kant, secretary, DIPP, and S Jaishankar, India’s foreign secretary.
It is, however, well known that EY was one of the topmost clients of the Gujarat government under the chief ministership of Narendra Modi, and promoted Gujarat’s high-profile biennial Vibrant Gujarat global investment summits worldwide between 2003 and 2013, dishing out propaganda material and organizing meetings with business executives for Modi.
EY’s chairman, India region, Rajiv Memani, in the foreword, says, the report reflects outcomes of Modi’s visits to “about 30 countries since May 2014, including India’s primary sources of FDI: the US, Japan, Germany, China, Korea and Australia.”
He adds, “We’ve seen a sharp turnaround in FDI in 2014. After declining for two successive years, investment in India has bounced back with a 32% growth to US$25b — significantly ahead of the 7% growth in FDI seen globally. Further, with FDI capital inflows of US$30.8b during the first half of calendar year 2015, India has emerged as the number one FDI destination in the world.”
In the chapter, “FDI in India: A V shaped recovery”, the report, however, admits, that India is still below the 2011 in FDI investment level. It says, “Though still far below the 2011 peak, the number of FDI projects rose 37% in 2014, with a proportional increase in jobs created by FDI.”
“The upturn marks a significant change from 2012 and 2013, when slow economic growth, regulatory hurdles, lack of transparency and policy paralysis had deterred investors. Investor confidence in India has been strengthened by improving economic growth and investor-friendly moves by the new Government”, the report points out.
However, there are still issues, it indicates: “Investors have generally been cautious. In 2014, the average project involved an investment of US$37m, compared with US$40m in 2012 and US$53m in 2010. Investors are positive but wary and keen to see real improvements in the business environment.”
“The uptick in FDI projects into India contrasts with a 3 per cent slide in the number of FDI projects worldwide, while it outpaced the 17% rise across the Asia-Pacific region. After a steep fall in 2013, FDI in manufacturing grew at its fastest in seven years”, the report says, adding, “In 2014, investors announced plans to invest a total of US$11.4b in 192 FDI projects, creating more than 67,000 jobs.”
The survey found that of the 505 business executives interviewed, 55 per cent were aware of the Make in India programme. However, it regrets, “There is a need to create visibility for the campaign among non-established players, as only 10 per cent of those without a presence in India were aware of it.”

Comments

TRENDING

#MeToo moment in Hyderabad Urdu varsity? Two girl students seek action against authorities

Counterview Desk
Has the #MeToo movement reached Maulana Azad National Urdu University (MAANU)? It would seem so if a recent letter by newly-appointed chancellor Firoz Bakht Ahmed to MAANU vice-chancellor Dr Aslam Parvaiz is any indication. Seeking reinstatement of two girl victims of “sexual harassment and humiliation”, the letter specifically names head of the department of the Media Centre for Journalism, suspecting, the problem could be much deeper.
Text of the letter: It is a matter of utmost perturbation for me to receive the two representations from the girls studying in the MCJ (Media Center for Journalism) regarding their sexual and subsequently, mental and social harassment at the hands of Prof Ehtesham Ahmad Khan, the HOD, MCJ.
We do not know, how many girls have been exploited by him and preferred to be silent for saving their family’s honour; however, there are two brave girls who stood to the depraved advances and misuse by Prof Ehtesham and came up with written complai…

"Ineligible" funding of Sardar Statue in Gujarat: CAG tells Central PSUs, it's not a heritage CSR activity

By Our Representative
The Comptroller and Auditor General (CAG) of India, in its recent report on Central Public Sector Enterprises (CPSE), has qualified public sector undertakings’ (PSUs') funding the 182-metre world’s highest Sardar Statue, currently being constructed in the Narmada river downstream of the Sardar Sarovar dam as an “ineligible” corporate social responsibility (CSR) activity.

Gujarat BJP MLAs, youth leader "incited" attack on North Indians: Cong releases video

Counterview Desk
Senior Gujarat Congress leader Shaktisinh Gohil, currently in charge of Bihar and national spokesperson, All-India Congress Committee, has sent a legal notice to chief minister Vijay Rupani threatening criminal case and civil defamation suit for accusing him with "baseless statement" that he was responsible for attacks on north Indians in Gujarat.

29th "NRC-related" suicide in Assam, as Nirod Baran Das takes his life by hanging on a fan

By Our Representative
Reporting 29th case of National Register of Citizens (NRC)-driven suicide in Assam, one of India’s human rights campaign sites has said that, on October 20, tragedy struck Kharupetia town in Darrang district of Assam, when a retired school teacher and advocate Nirod Baran Das “took his life by hanging himself to a fan in his home.” The report adds, “The NRC process has so far claimed over two dozen such lives in the past four months alone.”

"Highly irregular" for PSUs to fund Sardar Statue under Corporate Social Responsibility

Counterview Desk
In a letter to I Srinivas, secretary, Ministry of Corporate Affairs, Government of India, former secretary (economic affairs), Ministry of Finance, EAS Sarma, has raised questions on the funding of the Sardar Patel statue in South Gujarat by Central Public Sector Undertaking (CPSUs) relying on the Comptroller and Auditor General report (No 18/2018).

Murder of Tamil Nadu teenage Dalit girl: "Stoic silence" despite #MeToo movement

Counterview Desk
Brinelle D'souza, who is with the Centre for Health and Mental Health, School of Social Work, Tata Institute of Social Sciences, Mumbai, has prepared a strong statement to protest the brutal murder of 13-year-old Rajalakshmi. "Other than a few media reports, this gruesome killing has not caught national attention despite a very vibrant #MeToo campaign currently underway", regrets D'souza.

Post-MJ Akbar resignation: #MeToo movement and fears of backlash

By Sheshu Babu*
For the last few days, #MeToo movement has picked up momentum and many women are coming out with horrific tales of severe harassment in their past lives. They are not afraid anymore to expose famous persons including those at ministerial levels. As a senior journalist Neeraja Chowdhury opined (“An exit, a beginning”, October 18, 2018, indianexpress.com), "The #MeToo revelations are like the eruption of a volcano which was imminent, given the journey working women have covered. It was not easy to make public what they had gone through,and take on powerful men.”

Bank account frozen, raid on Amnesty office: Govt of India "treating" human rights NGOs like criminal enterprises

By Abhirr VP*
Amnesty India’s bank accounts have been frozen by the Enforcement Directorate, effectively stopping its work. Amnesty India is thus the latest target of the government’s assault on civil society in the country. The accounts of Greenpeace India were frozen earlier this month.

J&K Governor's rule: BJP's "failure" to go ahead with 44-plus strategy

By Syed Mujtaba Hussian*
Jammu and Kashmir (J&K) continues to witness cataclysm of events ever since the killing of editor-in-chief of “Rising Kashmir”, Shujaat Bukhari, followed by the BJP’s deliberated parting of ways with its coalition partner, People’s Democratic Party (PDP) and imposition of Governor rule.

60 ex-civil servants seek release of CAG reports on Rafale, demonetisation before 2019 polls

Counterview Desk
As many as 60 retired civil servants have asked President Ram Nath Kovind to expedite the release of Comptroller and Auditor General (CAG) reports on demonetisation and the Rafale deal. The letter, signed mainly by former Indian Administrative Service, Indian Foreign Service and Indian Police Service officers, regrets that the status of the audit is "unclear”. According to them, “An impression is gaining ground that CAG is deliberately delaying its audit reports on demonetisation and Rafale deal till after the May 2019 elections so as not to embarrass the present government”.