India has been ranked as the most attractive investment destination in the world for the next three years, according to Ready, set, grow: EY’s India Attractiveness Survey 2015, published in mid-October. The survey, conducted during March and April 2015, includes the views of more than 500 decision-makers from multinational organisations across various sectors.
With a rapidly growing middle-class of over 350 million, India presents incredible potential for New Zealand businesses. Among India’s most attractive features for doing business, investors rated its vast domestic market and availability of labour as most appealing. India’s geographical proximity to other Asian countries and the Middle East should also prove advantageous for New Zealand businesses looking to further expand their market and operations.
Among sectors, defense and aerospace, cleantech, automotive, metals and mining, consumer products and energy have shown a sharp increase in foreign direct investment.
Respondents have said that macroeconomic stability, political and social stability, the foreign direct investment policy, and the ease of doing business in India have improved since last year’s survey.
Speaking at the launch of the report, India’s Industrial Policy and Promotion Secretary, Amitabh Kant said: “We are determined to make India an extremely easy and simple place to do business. Our first priority is to do away with the many procedures and rules, followed by bringing in consistency and clarity in all our policies and tax regime and developing a world-class infrastructure.”
With the significant potential presented by the Indian market, and the Indian government actively encouraging commerce, this is the right time for New Zealand investors to consider India as a serious business destination.
Sanjay Kumar is a Tax Executive Director and Vidya Garimella is a Tax Consultant at EY