Vision Developed India: Opportunities and Expectations of MNC Report
Source: Hindu
GS III: Indian Economy
What is discussed under the Vision Developed India: Opportunities and Expectations of MNC Report?
- Key Highlights from the Report
Why in News?
- According to a report by the Confederation of Indian Industries (CII) and EY, India has the potential to attract $475 billion in Foreign Direct Investment (FDI) flows over the next five years due to a focus on reforms and economic growth.
- The report is named ‘Vision—Developed India: Opportunities and Expectations of MNCs.
Key Highlights from the Report
- Foreign Direct Investment into India has been steadily increasing over the previous decade, with FY 2021-22 getting $84.8 billion in FDI.
Image by Tumisu from Pixabay - This is despite the impact of the COVID-19 epidemic and geopolitical developments on investor sentiment.
- India is viewed as a developing manufacturing hub in global value chains, a rapidly growing consumer market, and a centre for the continuous digital revolution.
- In a continuously shifting geopolitical context, multinational companies value India’s big and stable democracy and persistent reform actions.
- 71% of MNCs operating in India see India as a significant location for global expansion.
- Optimism comes from both short-term and long-term possibilities.
- The majority of MNCs believe that the Indian economy will perform much better in the next 3-5 years.
- 96% of respondents are optimistic about India’s total potential.
- The report’s optimism about India’s potential originates from strong consumer patterns, digitization, and a developing services sector, as well as the government’s strong focus on infrastructure and manufacturing.
- The Indian government’s constant attempts to decrease regulatory barriers are also contributing to MNCs’ favourable view.
- Over 60% of MNCs in the report claimed that the business environment has improved in the previous three years.
- As the business environment continues to improve, MNCs would like to see increased efficacy of the national single window for approvals and clearances, better tax certainty, and a stronger contract enforcement system, among other measures.
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