Investors see India speeding up pace towards becoming world's top destinations for manufacturing. Check out this detailed infographic on what’s activating growth in India.

1. EY's 2015 India attractiveness survey
Ready, set, grow
India at the top
Manufacturing
leads investment
plans
Rank the three most attractive markets for investment in the next
three years (three possible answers)
Number one FDI destination
Source: fDi Markets, May and September 2015.
680
projects
US$25b
145,000
total jobs
created by FDI
2014
37%
rise in
FDI projects
32%
rise in FDI
investment
39%
additional
jobs
+135%
FDI capital
US$91m
highest ever
FDI capital
per project
+221%
FDI capital
increase in
manufacturing
Highlights of
1H15
Investors highlight improvements India in 2020:
a promising outlook
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Find out what’s activating growth in India
Download EY’s 2015 India attractiveness survey
at ey.com/emergingmarkets
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Please rate the following parameters for investment in India as very, fairly, little or notIndia has emerged as the number one Foreign Direct
Investment (FDI) destination in the world during the
1H15, with FDI capital inflows of US$30.8b.
at all attractive. (Percentage of respondents who rated the parameter as “very
attractive” or “fairly significant”)
What is the nature of the business activity you are
planning in India? (Open-ended question — multiple responses)
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).
Manufacturing
Services
Sales and marketing
FDI capital (share)
Source: fDi Markets, May 2015.
20132014
36.8
45.5
15.1
2.6
37.1
37.0
23.1
2.8
Services
Manufacturing
Retail
Strategic
21%
42%62%
Labor costs
86%
82%
Domestic
market
81%
82%
Labor skills
76%
78%
76%
70%
Stable political
and social
environment
74%
59%
Research and
development
72%
69%
FDI policy
68%
60%
Ease of doing
business
67%
57%
Manufacturing has
regained its share for 2014,
amounting to approximately
46% of FDI capital flows.
Source: EY's 2015 India attractiveness survey (respondents: 250,
asked to half of the sample); EY's 2014 India attractiveness survey
(total respondents: 502).
20142015
Among the top
three growing
economies in
the world
Among the
world’s leading
three destinations
for manufacturing
A regional
and global
hub for
operations
29%
37%
24%
35%
9%
21%
Investors see India speeding up pace toward becoming one world's
top destinations for manufacturing, as well as a regional hub for
operations.
How do you see India in 2020?
2%
1%
6%
9%
9%
10%
11%
12%
17%
18%
21%
27%
38%
47%
60%
Can't say
Commonwealth of
Independent States (CIS)
Russia
Japan
Sub-Saharan Africa
Central Eastern Europe
Northern Africa
Western Europe
Middle East
Latin America
North America
Brazil
Southeast Asia
China
India 32%
15%
12%
5%
10%
3%
4%
4%
3%
3%
3%
3%
1%
First mention
Total mentions
Source: EY's 2015 India attractiveness survey (total respondents 505).
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
significant” or “somewhat significant”)
Investment and administrative reforms
Tax-related reforms
Investment in infrastructure projects and
100 Smart Cities 89%
83%
75%
71%
83%
81%
Schemes on financial inclusion and Digital India
Legislation for land acquisition
Reforms to permit FDI in insurance and defense
Corporate tax rate reduction from 30% to 25%
in next four years
Implementation of Goods and Service Tax (GST)
by 2016
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 65%
Reforms expected to drive growth
A number of recent government reforms are well received by investors,
who expect them to increase India’s FDI attractiveness significantly.
Source: EY's 2015 India attractiveness survey (total respondents 505).
Priorities for action
In your opinion, what should be the three priority measures
for improving India’s investment climate?
Improve
infrastructure
66%
Enhance ease of
doing business
and transparency
47%
Streamline
taxation
44%
Simplify
labor laws
31%
Implement
economic reforms
31%
2015 2014 Improvements in 2015
Source: EY's 2015 India attractiveness survey (total respondents 505); EY's 2014 India attractiveness survey
(total respondents 502).Source: EY's 2015 India attractiveness survey (total respondents: 505).
Total 55%
awareness
71%
awareness
among
established respondents
69%
among those who are aware of
the program are likely to invest in
manufacturing in the next five years
Within six months of its announcement,
55% of our survey’s 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.
Make in India program:
positive for manufacturing
Note: The question on awareness of the Make in India program was asked to
respondents from manufacturing-related sectors, with overseas
expansion plans.
Source: EY’s 2015 India attractiveness survey (total respondents: 234,
established in India: 173.)
FDI investment
Macroeconomic
stability