EY's India Attractiveness Survey 2015 Released Findings Specific to US-based Organizations in New York

India is poised to become the world's fastest growing major economy, and is ranked as most attractive investment destination in the world for the nest three years, according to "Ready, set, grow: EY's 2015 India attractiveness survey". The findings of the survey, specific to US-based organizations, were released in New York on December 4, 2015.

Scott Halliday, the Vice Chair & Regional Managing Partner- Northeast at EY gives welcoming speech. (Photo/people.cn)

The survey reports major gains in perceptions among US investors in comparison to the findings of the 2014 survey in key areas such as ease of doing business, political and social stability, relaxation in FDI policy, domestic markets, and the labor skills. Compared to their global counterparts, US investors are more positive about India's labor skills, FDI policy, and stable political and social environment.

SudhirKapadia, the partner & National Tax Leader at EY India presents results of India Attractiveness Survey.(Photo/people.cn)

According to the survey, 41% of the US investors stated that the manufacturing-related sectors will attract the most foreign investments in India in the next two years, followed by Technology, media and telecom sector (TMT). A leading 53% of US-based investors are likely to expand or relocate their manufacturing facilities to India in the next five years.

Furthermore, the Indian Government's Make in India program that launched in September 2014 has also yielded remarkable results; the program resonated with investors with 55% of US-based respondents stated that they are aware of the initiative. Globally, those aware of Make in India are more upbeat about expansion plans, with 70% stating that hey are likely to expand or relocate their manufacturing facilities to India in the next five years.

From left to right, picture shows SudhirKapadia, the partner & National Tax Leader at EY India; EaswaranVekatasubramanian, CCO of IBM; Vivek Sharma, CEO of PiramalPharma Solutions; and GauravGarg, CEO of Global Personal Insurance at AIG, engaging in panel discussion at the event. (Photo/people.cn)

During the panel discussion, the topic of trust was brought up. "The sustainability of the investment is crucial", says GauravGarg, CEO of Global Personal Insurance at AIG, "It is important for the economy to build trust with the investors, it is not simply about a high GDP."

In terms of major challenges in US investments in India, SudhirKapadia, the partner & National Tax Leader at EY India, stated two major aspects. "Speedier advancement of the infrastructure manufacture is needed to help with the growth of the businesses", Kapadia then explains the second point being certainty in tax policy, "India will announce more details in February 2016 to give more certainty in tax policy, that will be very confirming to the investors."