2013 has seen the effect of the global slowdown on emerging economies as well. Growth in the fastest growing economies – China and India were down as well. The Indian government, who was under intense pressure to attract investments, has seemed to have turned things around a little bit. After a series of relaxations in norms related to FDI, the market is a lot more favorable for investment.
The recent survey by Ernst & Young seems to reinforce this aspect, with India topping the list of most attractive investment destinations. India is followed closely by Brazil and China. The remaining countries forming the top 10 are listed below:
4. Canada
5. USA
6. South Africa
7. Vietnam
8. Myanmar
9. Mexico
10. Indonesia
The top 3 investors likely to invest in India are the US, France and Japan; and they have been given new opportunities to invest after the Government of India relaxed FDI norms in many sectors earlier this year.
The Capital Confidence barometer report from E&Y is based on feedback from about 1600 senior executives from big organizations across 70 countries. This feedback throws light on automotive, technology, life-sciences, and consumer products as the most anticipated sectors for deals to be made. Mergers and acquisition activities are also expected to rise in 2014. The economic slowdown may have temporarily dampened investor spirits, but the increase in efficiency to combat the slowdown, has led to a much more favorable business environment.
Vaibhav Sharma 