- Thursday, April 25, 2024
By: Shubham Ghosh
FOREIGN direct investment (FDI) is critically important if India aims to become a $5 trillion economy, Deloitte chief executive officer Punit Renjen said while noting that more two-fifths of the 1,200 business leaders surveyed in the US, the UK, Japan and Singapore are planning to make additional or first-time investments in India.
Referring to the survey, he said India continues to be “one of the most attractive” FDI destinations in the world.
“Despite the COVID-19 destruction, inflows hit a record high last year. Business leaders, whom Deloitte surveyed, are preparing to make additional and first-time investments in India,” Renjen told PTI.
“FDI, I believe, is the key to India’s aspiration to be a $5 trillion economy and I think that is eminently doable. I am certainly a very big proponent of India and what can be accomplished,” he added.
Renjen said the fourth key takeaway from the survey was the value of the skilled workforce and prospects for economic growth, particularly domestic. According to him, these are important factors that attract FDI.
He also said that India is still seen as a challenging place for doing business. This perception, according to Renjen, is due to low awareness about government programmes, incentives and reforms, particularly those that have just been announced by the government, the CEO said.
“Of 1,200 business leaders surveyed in the US, UK, Japan and Singapore, 44 per cent are planning additional or first-time investments in India. Among the first-time investors, nearly two-third are planning to do so within the next two years,” Renjen said.
The Deloitte chief said that although there is a significant crossover, access to India’s domestic market is key in addition to the country being an export hub.
The attraction of the domestic market is very important for FDI investment, the CEO of the top multinational professional services network said, adding, “Business leaders rated India higher on economic growth and skilled workforce, which are great attractors.”
Noting that government policies are very welcome and are helping in attracting FDI in India, Renjen said some of the recent policy clarification is very good and the stated investment in infrastructure is very positive.
