Google+ Consumer Psyche: India to be No. 1 in Manufacturing

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Sunday, June 29, 2008

India to be No. 1 in Manufacturing

India is likely to see the largest growth in its share of foreign investment overall, and should become the world leader for investment in manufacturing, says a recent KPMG survey. The results showed a move away from investments in the United States, Japan, Singapore and the United Arab Emirates, and a big increase in flows to Brazil, Russia, China and India (BRIC).

A global survey of corporate investment plans was carried out by KPMG International. Corporate investment strategists from over 300 of the largest multinational companies in 15 major economies were asked where they plan to invest in the next 12 months and in five years' time.

This trend-setting survey suggests a major shift of capital flows from the USA, Japan and other European countries to the BRIC (Brazil, Russia, India and China) countries, in the next five years. Significantly, while 10 per cent of the companies surveyed expect to invest in India currently, that number will go up to 18 per cent in five years -- the biggest gain amongst all other BRIC countries.
Further an increasing proportion of investments will flow into industrial products and manufacturing in India. Interestingly, 64 per cent of the investment into India is expected to come from new entrants to the country.

India, according to the survey, has the potential to play an even more influential role in flow of capital and it's a great opportunity for India to further improve the economic and fiscal climate and attract and retain investments in its growing economy.

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